It stands for Euro interbank offered rate; an interest rate that is based on the average interest rates at which a panel of more than 50 European banks lend and borrow in the interbank market. This rate is published daily based on averaged interbank rates at which Eurozone banks offer to lend unsecured funds to other banks in the euro wholesale money market. Euribor is an important benchmark rate as it provides the basis for pricing and quoting a wide variety of financial products such as interest rate swaps, interest rate futures, mortgages, saving accounts, etc. There are different maturities for Euribor, ranging from one week to one year (in total, there are 15 different Euribor rates). However, the 1-day European interbank interest rate is known as Eonia.
Short-term Euribor is often used to determine interest payments in interest rate swaps for long-term maturities (up to 50 years). For example, the swap rate can be a five-year Euribor, with the floating rate being based on semiannual LIBOR.
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