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Euro LIBOR

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Euro LIBOR

What Does Euro LIBOR Mean?

The London Interbank Offer Rate denominated in euros. This is the interest rate that banks offer one another for large short-term loans in euros. The rate is fixed once a day by a small group of large London banks but fluctuates throughout the day. This market makes it easier for banks to maintain liquidity requirements because they are able to borrow quickly from other banks that have surpluses.

Investopedia explains Euro LIBOR

The Euro LIBOR is based on the average lending rates of 16 banks. These bank rates are available to the public through the British Bankers' Association. Euro LIBOR exists mainly for continuity purposes in swap contracts dating back to preeuro times and is not used very commonly.

Related Terms:
Debt
Interest Rate
Money Market
• London Interbank Offer Rate—LIBOR
Singapore Interbank Offered RateSIBOR



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