The PBoC prefers to use depositary financial institutions’ repo rates, called “DR”, as the key reference to price financial contracts, which can better reflect the real liquidity situation in the banking system, said a white paper published by the central bank on Monday.
BEIJING: China will help commercial lenders to shift from the London Interbank Offered Rate (Libor), which is facing global criticism, to a self-designed interest rate system, according to the People’s Bank of China.
Libor is the most widely used benchmark that emerged in the late 1960s to support the burgeoning syndicated loan market.
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