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Interbank Rates
A bank is an institution that deals with financial matters. It provides loans for a specific number of days, months or years and gets a specific amount as an interest rate.
Interbank Rate is a term used for this particular percentage of interest on credit for a short period of time. It is agreed upon by the banks involved in the financial market.
This is to fulfill the essential conditions of their business and to adjust the credibility of the debtors. This rate is decided according to the market trends and conditions, the amount of the money and the time limit of the debt.
In fact, it is necessary on the part of the banks to keep a certain portion of cash or the things easily convertible to cash every time. Same as the clients who deposit their money in the bank can withdraw their full amount or any specific amount at any time, so the bank must have money with it, it is commonly said to be the bank reserves.

Latest Currency Rates ( InterBank )



In case, the bank has shortage of money and the need arises, then it will have to take the money from the interbank market so that it can meet up to the requirements of the client.
It is also possible that the bank is having enough money that is more than its need, commonly said to be the surplus. Then, it will be in a position to provide loans to other banks in the financial market. Hence, it will charge a certain portion as an interest rate what we call Interbank Rate.
The latest interbank rates are updated from time to time worldwide. LIBOR (London Interbank Offered Rate) is the interest rate determined and adjusted on the daily basis by the major banks in London. It is also known as BBA LIBOR, i.e. British Bankers’ Association LIBOR. So, it is the basic standard for loans of short time period.
The currency used for the LABOR is Eurodollars on the international level. The duration of these loans can be as short as 24 hours and as long as 5 years. The rate varies from day to day. There are specific terms used as the names of lending and borrowing bank, i.e. the borrowing bank is called “Nostro” while the lending bank is known as “Vostro”.
Today, there are several websites that maintain the interbank rates in the form of a chart. It consists of the columns of “the currency of the country, Rate of Central Bank, O/N, 3M, 6M”, etc.
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