Explanatory Notes - Wholesale
Overseas currency deposit rates - 3 month Euribor
EURIBOR is the European Interbank Offered Rate for money market deposits. Since 4 January 1999 , the European Banking Federation and the EMU division of ACI, the Financial Markets Association, have sponsored the calculation of Euribor (with reference to a panel of 57 banks). Euribor is the rate at which euro interbank term deposits are being offered within the EMU zone by one prime bank to another at 11:00am Brussels time. It is quoted for spot value and on an actual/360 day basis. Because of the wider spread of banks (some of a lower credit rating than BBA LIBOR banks) EURIBOR is typically higher than EURO LIBOR. EURIBOR is the market benchmark for Euro interest rates as opposed to BBA EURO LIBOR.
Pre 1999, the data included refer to the ECU Libor rate. The ECU Libor was the interest rate at which ECU deposits were offered between participants in the London market. This was calculated by Telerate on behalf of the BBA and is referred to as BBA 11am fixing. Interest was also compiled on the basis of 360 for maturity.
