ACCA AFM Syllabus E. Treasury And Advanced Risk Management Techniques - LIBOR and LIBID - Notes ^{4 / 13}

means the London inter-bank offered rate.

It is the rate of interest at which a top-level bank in London can borrow wholesale short-term funds from another bank in London money markets.

means the London inter-bank bid rate.

It is the rate of interest that a top- level bank in London could obtain short-term deposits with another bank in London money markets.

The LIBID is always lower than the LIBOR