Home » Euro Interbank Offered Rate

Euro Interbank Offered Rate

« Back to Glossary Index

Euro Interbank Offer Rate, is a reference rate that is constructed from the average interest rate at which eurozone banks offer unsecured short-term lending on the inter-bank market. The maturities on loans used to calculate Euribor often range from one week to one year.

It is the LIBOR for euro-denominated forwards and futures. It is used as the reference rate at which banks can borrow euro-denominated funds from each other.

When the European Monetary Union was founded, domestic rates like euro- PIBOR, and euro- FIBOR were merged, thus creating one of the most liquid interbank interest rate markets.

Related