BRICS – LIBOR TO SOFR COMPLETES 30th June 2023 – THE END of “London Inter-Bank Offered Rate”

Secured Overnight Financing Rate

Council missold LIBOR- via BARCLAYS
What is LIBOR
NEW YORK FED AND SOFR
BANK OF ENGLAND AND SOFR
BRICS NDB BANK GROWING

BRICS SUPPORT SOFR – NDB – NEW DEVELOPMENT BANK – FINANCED BY BRAZIL, RUSSIA, INDIA, CHINA, SOUTH AFRICA – ALSO UNITED ARAB EMIRATES, EGYPT, URUGUAY, SAUDI ARABIA, TURKEY

WHAT IS LIBOR

The London Inter-Bank Offered Rate (LIBOR) has been the most widely used interest rate benchmark in today’s financial system since the 1970s.

The LIBOR coverage ranges from complex derivatives to residential mortgages, underlying over $370 trillion of transactions across the globe. Since 2008, significantly reduced volumes of interbank unsecured term borrowing are calling into question LIBOR’s ability to continue playing the central role of being the reference interest rate. In 2017, the regulatory body in the United Kingdom and LIBOR regulator

– Financial Conduct Authority (FCA) – declared that banks will no longer be required to make LIBOR submissions after December 31, 2021.

In 2017, FCA announced that they would no longer persuade or compel member panel banks to make LIBOR quote submissions after 2021

SOFR covers the most volume of transactions of any rate based on the U.S. Treasury repurchase agreement (repo) market. It is based on transaction data from three segments of the Treasury repo market: (i) tri-party repo, (ii) General Collateral Finance (GCF) repo, and (iii) bilateral repo transactions cleared through the Fixed Income Clearing Corporation (FICC). As a good representation of conditions in the overnight Treasury repo market, SOFR reflects an economic cost of lending and borrowing by the wide array of market participants active in the market.

The New York Fed is the administrator of – Support a successful transition away from USD LIBOR.

ARRC_SOFR_Summer_Series_Event_SOFR_Explained.pdf Download

https://awakening369.org/2023/04/05/yuan-rises-as-the-us-falls-a-changing-world-order/

A CHANGING WORLD ORDER

BANK OF ENGLAND ON SOFR

LIBOR settings continued for the duration of 2022 on a ‘synthetic’ basis and 1- and 6-month sterling LIBOR continued on a synthetic basis until end-March 2023. These settings have now ceased. 3-month sterling LIBOR will continue on a synthetic basis until end-March 2024. Five US dollar LIBOR settings will continue to be calculated using panel bank submissions until end-June 2023

More countries knocking on BRICS’ door a sign the world needs fairer governance than West-dominated one

What BRICS is against are power politics, hegemony, the law of the jungle, all of which basically determine that in international politics, only major powers have a say, and small countries must be obedient, or even be exploited. Against this backdrop, BRICS calls for fairness and justice, a global governance in which developing countries have their due status and their voices can be heard. The BRICS just want to bring a balance in the current global order.

When the West compares BRICS with G7 and NATO, it has turned a blind eye to the fact that G7 has long become a rich countries’ club, and NATO’s mentality is still trapped in the Cold War. Whenever G7 attempts to put up a show to discuss various global issues nowadays, all it really cares about is containment of China and Russia.

But BRICS advocates win-win for the entire world, that is, a win-win not just for the developing countries, but also for the developed powers. This is the biggest difference between BRICS and Western blocs.

In the past, developing countries had not enough strength to reach the goal. Now the timing has come.

Regulations or legal procedures for BRICS enlargement are under discussion. It is thus unlikely that BRICS will absorb new members any time soon before relevant principles and rules are carried out. But when Turkey, a NATO ally, applies for BRICS membership, it mirrors BRICS, be it its capacity or ideas, represents something much cooler than US-dominated rules and orders. At least it signals that the world needs a reformed governance where Western voices are not the only sound.
GLOBAL TIMES

This was the first time that a Head of State visited the Bank's Headquarters in Shanghai and addressed the NDB staff in person. President Lula had the opportunity to witness the NDB's commitment to promoting sustainable development and delivering on its mandate.#NDB #BRICS pic.twitter.com/MlC9tfySPY
— New Development Bank (@NDB_int) April 13, 2023

In her speech, H.E. Mrs. Dilma Rousseff emphasized the Bank's commitment to supporting Brazil's sustainable development goals and highlighted the importance of the presidential visit for strengthening the cooperation between the NDB and Brazil.#NDB #BRICS pic.twitter.com/0aut3dLM1H
— New Development Bank (@NDB_int) April 13, 2023

COUNCILS MISSOLD LIBOR

Seven local authorities started a joint action against Barclays Bank back in 2019 over LIBOR manipulation, centred on LOBO loans that had interest rates set in relation to LIBOR.