Thursday, January 1

Eurodollar Time Deposit Markets,LIBOR and Euribor

Eurodollar Time Deposit Markets
Eurodollar time deposits are demoniated in U.S. dollars on deposit outside the United Statest.

London Interbank Offer Rate (LIBOR )

The interest rate paid on interbank deposits in the international money markets (also called the Eurocurrency markets), commonly used as a benchmark for short-term interest rates in setting loan and deposit rates and as the floating rate on an interest rate swap.

Euro Interbank Offered Rate (Euribor)
Similar to LIBOR except it uses euros and euro deposits in the lending and borrowing between banks, instead of dollars. Euribor is the rate at which euro interbank term deposits are offered by one prime bank to another prime bank. Euribor is the benchmark rate of the large euro money market.

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