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 interbank 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.