How to Tell If You're Getting a Fair Exchange Rate

You need to convert $1,000 USD to Sri Lankan rupees.

You check Google: 309.71 LKR per 1 USD

You check your bank's website: 305.44 LKR per 1 USD

You check Maash: somewhere in between

Why does everyone quote a different rate? Who's being fair here?

If we're all talking about the same dollar and the same rupee, shouldn't there be one correct exchange rate?

The answer is: there's a "clean" rate (called the mid-market rate), and then everyone adds their own markup. Understanding the difference between these is the key to knowing whether you're getting a fair deal or quietly paying extra.

This guide explains what the mid-market rate is, how spreads work, and how to calculate what you're really paying when you convert currency.

What Is the Mid-Market Exchange Rate?

The mid-market rate (also called the interbank rate or spot rate) is the middle point between:

• The price big banks are willing to buy a currency at (the bid)
• The price they are willing to sell at (the ask)

It's derived from real trading between financial institutions, not invented by Google or any single bank.

Where You See It

What you see on Google or Xe.com is usually a real-time or near-real-time mid-market quote, rounded to a few decimal places.

Example (as of January 15, 2026):

• Google shows: 309.7121 LKR per 1 USD
• This is the mid-market rate at that moment

Why It Matters

Historically, only dealers and large institutions saw live interbank quotes. Retail customers only saw bank "buy/sell" boards with no context for whether those rates were fair.

Over the last 10-15 years, online tools began exposing live mid-market data to everyone, giving everyday users a reference point to judge whether they're getting a fair deal.

Why What You Get Is Different from What You See on Google

There are two main reasons the rate you actually get differs from Google's mid-market rate.

1. Providers Build In a Spread

Banks and money services rarely trade with you at the pure mid-market rate.

Instead, they quote:

• A buy rate (what they pay when they take your USD and give you LKR)
• A sell rate (what they charge when you buy USD with LKR)

The gap between those two is the spread, and it's where they earn most of their foreign exchange revenue.

2. Timing and Update Lag

Google and Xe pull from continuous feeds. Some banks update their retail boards only a few times per day.

If you check at slightly different times, small differences (fractions of a rupee) can come from:

• Different update windows
• Different pricing sources
• Rounding differences

What to focus on: Ignore tiny per-unit noise. Focus on how many percent away from mid-market the rate really is.

How Much Does That Spread Cost You?

Let's turn the abstract spread into real money.

Generic Example

Suppose mid-market is 310 LKR per USD.

• Provider A quotes you 305 LKR when you sell USD
• Provider B quotes you 309 LKR

On 1,000 USD:

At mid-market, 1,000 USD = 310,000 LKR (theoretical)

• Provider A: Gives you 305,000 LKR
  • You "lose" 5,000 LKR vs mid-market (~1.6%)
• Provider B: Gives you 309,000 LKR
  • You "lose" 1,000 LKR vs mid-market (~0.3%)

Both can honestly say "no transaction fee," but one quietly charges 5× more via the exchange rate itself.

Sri Lanka example: What Are You Actually Seeing?

Let's decode what official exchange rates actually mean.

CBSL (Central Bank of Sri Lanka)

The CBSL publishes daily indicative USD/LKR rates:

• A buy rate and a sell rate based on actual interbank transactions from the previous business day
• These are market references, not the exact rates you get at a retail counter

These rates tell you where the market is, but not what individual banks will offer you.

Commercial Banks

Each bank (Sampath, Seylan, People's, etc.) then publishes its own FX table for customers with:

• Different rates for cash, drafts, and telegraphic transfers (TT)
• Clear "buy" and "sell" columns

When you sell USD from your foreign currency account to get LKR, you're paid at the bank's USD buy rate.

When you buy USD with LKR, you pay at the bank's USD sell rate.

These retail rates typically sit 1-2% away from mid-market, depending on direction, type of transaction, and size.

Think of CBSL as giving the scoreboard, and each bank deciding how far from the scoreboard it wants to stand when dealing with you.

How Maash Works: Mid-Market + 1% + $1

Here's how Maash approaches exchange rates when you withdraw money to your local bank account.

The Model

Maash anchors on a mid-market rate that tracks very closely to what you see on Google or Xe.

For withdrawal (USD to LKR), Maash charges:

• 1% FX fee on the conversion amount
• $1 flat fee per transaction

Both fees are explicit, not hidden. The final rate you see in the app is "mid-market adjusted by 1%" and adding an $1 fee on top.

Why This Structure?

The 1% FX fee covers the cost of currency conversion with our banking partners and maintaining fair rates close to mid-market.

The $1 flat fee covers transaction processing costs.

For larger conversions, the flat fee becomes negligible as a percentage. For smaller conversions, it's a fixed, predictable cost rather than a percentage that grows with the amount.

Why This Makes It Easy to Compare

You can:

• Open Google and check the mid-market rate
• Compare it to the Maash rate in real-time
• See that the difference is exactly 1% plus $1 fee
• Withdraw easily and understand precisely what you're paying

Contrast with Traditional Banks

Instead of "CBSL rate + a secret margin," Maash does "mid-market + a clearly stated 1% + $1."

You see the real cost instead of guessing it.

Today's Real Example: Google vs Maash vs CBSL

Let's use actual numbers from January 15, 2026 to show the difference.

The Rates (January 15, 2026)

• Google mid-market (USD→LKR): 309.7121 LKR per 1 USD
• Maash base rate: 309.6484 LKR per 1 USD
• CBSL USD buy: 305.4368 LKR per 1 USD

You are a user selling 1,000 USD to get LKR (withdrawing to your local bank account).

Step 1: Compare Raw Rates to Mid-Market

• Mid-market (reference): 309.7121
• Maash base: 309.6484 (almost identical, ~0.02% lower)
• CBSL buy: 305.4368 (~1.4% below mid-market)

Step 2: Apply Maash's 1% FX Fee

Maash charges 1% on the conversion, so the effective Maash rate becomes:

309.6484 × (1 − 0.01) = 306.552 LKR per USD

Step 3: Calculate What You Actually Get

On 1,000 USD:

Mid-market theoretical value:

• 309.7121 × 1,000 = 309,712 LKR

Maash payout calculation:

• Exchange at effective rate: 306.552 × 1,000 = 306,552 LKR
• Subtract $1 fee: 306,552 − 309 LKR (approx $1 at current rate) = 306,243 LKR

CBSL buy rate payout:

• 305.4368 × 1,000 = 305,437 LKR

Step 4: Who's Closest to Mid-Market?

Total loss vs mid-market on 1,000 USD:

Maash (after 1% + $1):

• 309,712 − 306,243 = 3,469 LKR difference
• About 1.12% below mid-market (1% from FX fee + 0.12% from $1 flat fee)

CBSL buy:

• 309,712 − 305,437 = 4,275 LKR difference
• About 1.38% below mid-market

What This Means

On 1,000 USD, even after Maash's explicit 1% FX fee and $1 flat fee, you're still closer to the true mid-market rate than the CBSL buy rate.

The CBSL rate effectively charges you an extra ~0.26 percentage points via the spread.

Your bank's retail rate will typically be similar to or slightly different from the CBSL indicative rate, but still notably further from mid-market than Maash's total cost.

Impact of Flat Fee at Different Amounts

The $1 flat fee has different relative impacts depending on transaction size:

On $500:

• $1 = ~3.10 LKR
• Flat fee adds ~0.2% additional cost
• Total cost: ~1.2% below mid-market (1% FX + 0.2% flat fee)

On $5,000:

• $1 = ~3.10 LKR
• Flat fee adds ~0.02% additional cost
• Total cost: ~1.02% below mid-market (1% FX + 0.02% flat fee)

Key insight: For larger conversions, Maash's total cost approaches 1% as the flat fee becomes negligible. For smaller conversions, the flat fee is still predictable and clearly shown.

So... What Is "Fair" in Practice?

Let's turn the math into a simple rule.

Three Principles of Fair FX

1. Fair reference point
Start from mid-market (or a clearly defined indicative rate), not an arbitrary internal rate.

2. Small, transparent fees
Aim for ~1% FX fee for personal account flows, not 3-5% hidden in the spread.

3. Full transparency
Show users both the exchange rate and all fees upfront. Don't hide the economics in "0% fee" marketing.

Your Checklist

When converting currency, follow these steps:

1. Look up the live mid-market rate
Use Google, Xe.com, or Wise.com

2. Compare it to the rate you're offered
Whether from a bank, exchange service, or app

3. Calculate the total cost

• Percentage difference from mid-market (the spread)
• Plus any flat fees
• Equals your total cost

4. Evaluate

• Total cost around 1-1.5%: reasonable
• Total cost 3-4%: you're likely overpaying

How to Use This When Converting Currency in Maash

Let's apply this to your actual usage.

When You Convert USD to LKR

When you convert USD to LKR in Maash (for example, to withdraw to your local bank):

• The app shows you the exact exchange rate being used
• The FX fee is a fixed 1% on the conversion amount
• The $1 flat fee is shown separately
• You can verify the rate yourself at any time

Simple Verification Process

Next time you withdraw:

1. Open the Maash app and check the conversion rate
2. Open Google and search "USD to LKR"
3. Calculate: Google rate × 0.99 (subtract 1%)
4. Compare to the Maash rate shown
5. Add the $1 flat fee to calculate total cost

What you get from Maash should match Google rate × 0.99 - $1 very closely.

Why This Matters

Once you've done this once or twice, you'll immediately see which option is actually "fair" for you – not just which one claims to have "no fees."

A provider charging you 0% fee but giving you a rate 3% worse than mid-market is more expensive than a provider charging 1% + $1 but staying close to mid-market.

The total cost is what matters, not whether fees are hidden in the rate or shown separately.

The Bottom Line on Fair Exchange Rates

Fair doesn't mean "matches Google exactly." That's impossible as providers need to make money to continue providing their services.

Fair means:

• Starting from mid-market as the reference
• Adding a small, transparent markup
• Showing you what you would get before you confirm the transaction

When someone offers you "0% fee," your next question should be: "What's your exchange rate compared to mid-market?"

Because that's where the real cost usually lives.

Next time you convert currency, spend 30 seconds checking: mid-market vs offered rate vs total fees. The difference might be hundreds or thousands of rupees on a single transaction.

Disclaimer: This article is for general informational and educational purposes only and does not constitute financial, investment, legal, tax, or other professional advice. Maash is a financial technology platform and is not a bank or investment adviser. Product availability and features may vary by country or region and are subject to eligibility checks, partner terms, and applicable laws and regulations.