Interbank rate
BEIRUT, Dec 13 Reuters - Overnight interbank rates for Lebanese pounds reached 75 percent on Thursday, the local English-language Daily Star newspaper and a banking source said, the highest rate since a political crisis late last year. The Daily Star reported that the rate had stood at 50 percent in the past three days. The banking source told Reuters the rate had been 40 percent on Tuesday and 55 percent on Wednesday. It comes as the cost of insuring Lebanese sovereign debt against default this week reached its highest level since the global financial crisis of Seven months since a general election, Lebanon still has no government as its rival parties jostle for cabinet positions. The country is heavily indebted and has a stagnant economy.
Interbank rate
BEIRUT, Dec 13 Reuters - Overnight interbank rates for Lebanese pounds reached 75 percent on Thursday, the local English-language Daily Star newspaper and a banking source said, the highest rate since a political crisis late last year.
The Daily Star reported that the rate had stood at 50 percent in the past three days. The banking source told Reuters the rate had been 40 percent on Tuesday and 55 percent on Wednesday. It comes as the cost of insuring Lebanese sovereign debt against default this week reached its highest level since the global financial crisis of Seven months since a general election, Lebanon still has no government as its rival parties jostle for cabinet positions. The country is heavily indebted and has a stagnant economy.
Investors are looking for a new government to pursue long-stalled economic reforms to put public debt on a sustainable footing. Last week it reached double digits. In November Lebanon went through a political crisis after Prime Minister Saad al-Hariri resigned in a declaration made from Saudi Arabia, which he later rescinded after it was widely acknowledged that Riyadh had forced him to step down.
Reporting By Angus McDowall. Discover Thomson Reuters. Directory of sites. United States. Credit RSS. Ghobril said there could be a range of explanations for the higher rate.
The interbank lending market is a market in which banks lend funds to one another for a specified term. Most interbank loans are for maturities of one week or less, the majority being overnight. Such loans are made at the interbank rate. Interest Rates, Commercial Banks -LBP: Interbank Rate: End of Period Rate. Remark, -. Source, Banque du Liban. Note, In percent. Download Format.
The interbank rate is the rate of interest charged on short-term loans made between U. Banks may borrow money from other banks to ensure that they have enough liquidity for their immediate needs, or lend money when they have excess cash on hand. The interbank lending system is short-term, typically overnight and rarely more than a week. The term interbank rate also refers to the interest rate charged when banks conduct wholesale transactions in foreign currencies with banks in other nations. A consumer will never get the interbank rate on a loan.
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Interbank Rate in Lebanon decreased to 3 percent in March from 20 percent in February of Interbank Rate in Lebanon averaged 8.
Lebanese pound overnight interbank rate hits 75 pct-media, source
See: Interbank offer rate. See: Interbank bid rate. Mentioned in? Interbank interbank clearing interest rate. References in periodicals archive?