👉 The Exclusive IOR (International Orders Rate) is a benchmark interest rate used primarily in international finance, particularly for pricing and hedging derivatives like forward contracts and swaps. It represents the cost of borrowing or lending funds on the international market, adjusted for credit risk and other factors specific to cross-border transactions. Unlike the LIBOR (London Interbank Offered Rate), which is widely used but faces regulatory scrutiny, the Exclusive IOR is more transparent and directly tied to the creditworthiness of the issuing country, making it a preferred reference rate in markets where LIBOR is not available or is considered unreliable. This exclusivity ensures that the rate reflects the unique risk profile of each issuer, providing a more accurate basis for financial instruments in international trade and investment.
