what was the london interbank offered rate libor 
the london interbank offered rate libor was a benchmark interest rate for short term loans between major global banks it was phased out in 2023 from 1986 to the 2000s libor was a globally accepted key benchmark for the cost of borrowing between banks the rate was calculated and published each day by the intercontinental exchange ice but scandals and questions around its validity as a benchmark rate resulted in it being phased out according to the federal reserve and regulators in the united kingdom libor was phased out on june 30 2023 and replaced by the secured overnight financing rate sofr libor one week and two month usd libors stopped publishing as of dec 31 2021 as part of the phaseout 1 some usd rates are still published using a synthetic methodology but these rates will cease in sept 2024 2mira norian investopediaunderstanding liborlibor was the average interest rate at which major global banks borrow from one another it was based on five currencies the u s dollar the euro the british pound the japanese yen and the swiss franc and served seven different maturities overnight spot next one week and one two three six and 12 months 1interbank lending is the basis for consumer loans in countries around the world so it impacts consumers just as much as it does financial institutions the interest rates on various credit products such as credit cards car loans and adjustable rate mortgages arms fluctuate based on the interbank rate this change in rate helps determine the ease of borrowing between banks and consumers the combination of five currencies and seven maturities led to a total of 35 different libors calculated and reported each business day the most commonly quoted rate was the three month u s dollar rate usually referred to as the current libor 1ice calculated the libor by asking major global banks how much they would charge other banks for short term loans the association took out the highest and lowest figures then calculated the average from the remaining numbers this is known as the trimmed average this rate was posted each morning as the daily rate and announced and published once a day around 11 55 a m london time by the ice benchmark administration iba 1libor was phased out in june 2023 and replaced by the secure overnight financing rate sofr 