Helpful advice

The money market reference rate for the euro.

Since the 1st of January 1999, Europe has a new currency, the euro. To date, 12 countries of the European Union have adopted the euro.

European banks considered that the introduction of the single currency made it necessary to establish a new interbank reference rate within the Economic and Monetary Union: Euribor.

Euribor

(Euro Interbank Offered Rate) is the rate at which euro interbank term deposits within the euro zone are offered by one prime bank to another prime bank. It is sponsored by the European Banking Federation, which represents the interests of 4 500 banks in 24 Member States of the European Union.

These rates benefit from:

• A large integrated market with a single currency.
• An impressive panel of quoting banks of first class credit standing.
• A solid Code of Conduct setting out strict rules for the panel banks.
• An independent Steering Committee of market experts which oversees the application of the Code of Conduct and monitors market developments.

The choice of banks quoting for Euribor is based on market criteria. These banks are of first class credit standing. They have been selected to ensure that the diversity of the euro money market is adequately reflected, thereby making Euribor an efficient and representative benchmark.