ICAI Program on – FOREX AND TRADE CREDIT At Moradabad, 28 th June, 2014 Presentation by: Ashit...
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Transcript of ICAI Program on – FOREX AND TRADE CREDIT At Moradabad, 28 th June, 2014 Presentation by: Ashit...
![Page 1: ICAI Program on – FOREX AND TRADE CREDIT At Moradabad, 28 th June, 2014 Presentation by: Ashit Hegde 1.](https://reader038.fdocuments.in/reader038/viewer/2022110208/56649daf5503460f94a9ca63/html5/thumbnails/1.jpg)
ICAI Program on –FOREX AND TRADE CREDIT
At Moradabad, 28th June, 2014
Presentation by:Ashit Hegde
1
![Page 2: ICAI Program on – FOREX AND TRADE CREDIT At Moradabad, 28 th June, 2014 Presentation by: Ashit Hegde 1.](https://reader038.fdocuments.in/reader038/viewer/2022110208/56649daf5503460f94a9ca63/html5/thumbnails/2.jpg)
LIBOR and MIFOR
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![Page 3: ICAI Program on – FOREX AND TRADE CREDIT At Moradabad, 28 th June, 2014 Presentation by: Ashit Hegde 1.](https://reader038.fdocuments.in/reader038/viewer/2022110208/56649daf5503460f94a9ca63/html5/thumbnails/3.jpg)
LIBOR is London Interbank offered Rate.
Libor is calculated and published by Thomson Reuters on behalf of British Banks Association . This is an index of the rate which a first class bank in London will charge another first class bank for a short term lending.
It is available for seven different maturities—from overnight to twelve months and in five different currencies including Euro, USD, Pound and Yen.
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MIBOR is Mumbai Interbank Offer Rate
This reference rate originally developed by NSE is now co-branded with FIMMDA and is now known as “ FIMMDA – NSE MIBOR “.
Mibor is based on rates polled by NSE from a representative panel of 30 banks, institutions and mutual funds. The rate is used as a benchmark for majority of deals struck for swaps, FRAs etc
NSE releases this rate at 0955 hours for overnight rate and at 1215 hrs for other periods.
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MIFOR is Mumbai Inter bank Forex Offer Rate
This is a combination of USD Libor and forward premium.
Note: There is a proposal to shift the setting of Mibor from the existing polling method to volume weighted average of trades executed between 9am and 10am.
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NOSTRO A/C Banks in India maintain accounts with banks abroad in foreign currency. (E.g. UCO bank, Kolkata maintaining a/c with Citibank, New York in US Dollars)Such accounts are referred to as NOSTRO (Our a\c with you) a/c.
VOSTRO A/CThis is a rupee a/c maintained by a bank abroad with a bank in India in INR. (E.g. HSBC bank, Dubai maintaining a/c with Canara bank, Mumbai in INR)VOSTRO means your a/c with us.
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