London Interbank Bid Rate

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The London Interbank Bid Rate (LIBID) is a bid rate; the rate bid by banks on Eurocurrency deposits (i.e. the rate at which a bank is willing to borrow from other banks). It is "the opposite" of the LIBOR (an offered, hence "ask" rate). Whilst the British Bankers' Association LIBOR rates, there is no correspondent official LIBID fixing.

Conventional wisdom used to assert that a LIBID rate could be calculated by subtracting a fixed amount (often given as 1/8th of 1%) from the prevailing BBA LIBOR rate, however this is no longer the case as bid/offer spreads have tightened in recent years.

[edit] External links

• British Bankers' Association Website
• Historical Rates