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What is the LIBID rate?

Updated: 8/17/2019
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LIBOID is the rate at which (theortically) banks bid for funds in the money market. LIBOR is the offer rate.

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Q: What is the LIBID rate?
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What is LIBID Rate?

LIBOID is the rate at which (theortically) banks bid for funds in the money market. LIBOR is the offer rate.


Why is the libor always higher than the libid?

Libor is London Inter-bank Offer Rate and Libid is London Inter-bank Bid Rate. Libor is always higher than Libid. If banks use Libor to lend (ask) and Libid to buy (bid) how come that while one bank expects to get a higher rate while lending hope to get a lower rate while borrowing? While one bank buys the other sells; while it is a bid rate to one it is offer rate to the other! How is it that this market function? Is it because the bid rate is expected to decrease within a day and the offer rate expected to increase simultaneously to keep-up with the margins in the inter-bank market?


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What is the full form of libor?

The London Interbank Offered Rate (or LIBOR, pronounced /ˈlaɪbɔr/) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). LIBOR will be slightly higher than the London Interbank Bid Rate (LIBID), the rate at which banks are prepared to accept deposits.


Where can you find historical libid rates?

You can find historical LIBOR rates in financial publications, on financial news websites, and on the websites of financial institutions or central banks. These rates can also be accessed through databases and historical financial data providers.


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