DEFINITION of 'London Interbank Bid Rate - Libid'

Libid is the average interest rate at which major London banks bid for eurocurrency deposits from other banks. 

BREAKING DOWN 'London Interbank Bid Rate - Libid'

The London Interbank Bid Rate (Libid) is the other side of the more famous London Interbank Offered Rate (Libor). Whereas Libor is the "ask" rate at which a bank is willing to lend eurocurrency deposits to another bank, Libid is the "bid" rate at which banks are willing to borrow. The difference between the two is the bid-ask spread on these transactions.

While Libor is a popular benchmark interest rate that is calculated and published by Intercontinental Exchange (ICE), Libid is not standardized or publicly available. It is not used outside of the interbank lending market. "Limean" refers to the average of Libor and Libid.

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