👉 The BD IOR, or Bid-Discount Interest Overnight Rate, is a key financial benchmark that represents the interest rate at which banks lend to each other overnight, adjusted for the difference between bid (the price at which they are willing to sell funds) and discount (the price at which they are willing to borrow funds). This rate is crucial for pricing various financial instruments, including interbank loans and derivatives. The BD IOR helps market participants understand the liquidity conditions and cost of borrowing in the money market, influencing decisions on short-term funding strategies and risk management. It is typically quoted in major financial centers and serves as a benchmark for other interest rates in the economy.
