Important of LIBOR and MIBOR in swap contract
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The five-letter acronym, LIBOR, stands for London Interbank Offered Rate, but its significance spreads far beyond the City of London or even Europe. Indeed, the LIBOR rate it is one of the most globally significant numbers in finance. Banks, financial institutions, and credit agencies all over the world look to LIBOR to set their own interest rates.
MIBOR is calculated every day by the National Stock Exchange of India (NSEIL) as a weighted average of lending rates of a group of major banks throughout India, on funds lent to first-class borrowers. The rate is used currently for forward contracts and floating-rate debentures.
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