1. ICAI Program on – FOREX AND TRADE CREDIT At Moradabad, 28 th June, 2014 Presentation by: Ashit Hegde 1

2. LIBOR and MIFOR 2 Ashit Hegde

3. 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. 3 Ashit Hegde

4. 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. 4 Ashit Hegde

5. 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. 5 Ashit Hegde

6. 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/C This 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. 6 Ashit Hegde