LIBOR

LIBOR
It is the abbreviation for London Inter-BanksOffered Rate. This is utilized as the reference rate by the banks for exchanging money from another bank. It is most accepted rate of interest for the futures, rate of interest and forwards. The Bankers Associationis an organization that establishes LIBOR. This permits the banks for securing money at a cheap cost as they are exchanging at the rate of interbank. The BBA measures rates of LIBORfor all various currencies at same time. Some of the popular examples are Japanese Yen, euro LIBOR. An important thing that should be noted is other important centers build theirown rates of interbankfor the financial instruments and domestic loans. Some of the examples are PIBOR and SIBOR.