What is interbank rate?

The alternate definition of interbank rate is relevant to the interbank market, the global market used by financial institutions to buy and sell foreign currencies. In this case, the interbank rate or interbank exchange rate is the current value of any currency as compared to any other currency.

Who has the lowest interbank rate?

The lowest rate is available only to the largest and most creditworthy financial institutions. The alternate definition of interbank rate is relevant to the interbank market, the global market used by financial institutions to buy and sell foreign currencies.

What is the interbank market?

The interbank market is a global network utilized by financial institutions to trade currencies and other currency derivatives directly between themselves. Banks use the interbank market to manage their own exchange rate and interest rate risk as well as to take speculative positions based on research.

What are Interbank Bid-ask rates?

The interbank bid-ask rates form the basis for the market's currency rates from which pricing is determined for all other participants. A foreign exchange rate is the price or rate showing how much it cost to buy one currency in exchange for another currency.