The Most Important Number in Finance Is Going Away

In the world of finance, there is one number that arguably matters more than any other. You can find it in the small print on adjustable-rate mortgages and private student loans, it is the basis for enormous corporate loans, and it underpins nearly $200 trillion of derivatives contracts. It’s called LIBOR

Now, regulators are stressing that the benchmark could be gone by 2021.

What will replace it? Nobody knows for sure.

Here’s an interesting read

If you want to know more about LIBOR, it’s rise and fall and sordid history that undid it then this podcast is highly recommended

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Similar situation has already happened in our country. RBI used to release 13:30 its, ‘Reference Rate’, for forex transactions. Now it is being released by a private limited corporate body, 'Financai Benchmarks of India Pvt. Ltd.