# What Is the Mumbai Interbank Forward Offer Rate (MIFOR)?

The Mumbai Interbank Forward Offer Rate (MIFOR) is the rate at which banks offer to lend funds to one another in the forward market in Mumbai. This rate is used as a benchmark for pricing forward contracts in a number of currencies. What is meant by interbank? The interbank market is the global network of commercial banks that trade with each other. It is the biggest and most important financial market in the world. The interbank market is where banks lend and borrow money from each other. The interest rates that banks charge each other are called interbank rates. The interbank market is important because it sets the tone for all other financial markets. If the interbank market is strong, then other markets will be strong. If the interbank market is weak, then other markets will be weak. What is adjusted SOFR? Adjusted SOFR is a version of the SOFR that has been adjusted to account for the effects of irregular cash flows, such as those associated with the settlement ofLIBOR-based derivatives contracts. The adjustment is based on an estimate of the expected future path of SOFR, derived from a set of SOFR futures contracts. What is India interbank rate? The India interbank rate is the rate at which Indian banks lend to one another overnight. This rate is used as a benchmark for other lending rates in the economy, such as mortgage rates and credit card rates. The interbank rate is also known as the "repo rate" or the "repurchase rate". How do you calculate interest on LIBOR? LIBOR (London Interbank Offered Rate) is the rate of interest at which banks offer to lend money to one another in the international interbank market. The LIBOR is determined by a daily poll of banks conducted by Thomson Reuters.

To calculate interest on a LIBOR loan, you will need to know the following:

The principal amount of the loan
The maturity date of the loan
The LIBOR rate for the relevant period

The interest on a LIBOR loan is calculated using the following formula:

Interest = Principal x (LIBOR rate / 100) x (Number of days / 360)

For example, if you have a loan of \$1,000 with a maturity date of 30 June 2020 and the LIBOR rate for the relevant period is 2.5%, the interest on the loan would be calculated as follows:

Interest = \$1,000 x (2.5% / 100) x (180 / 360)
= \$25 What is the current SOFR rate? The current SOFR rate can be found on the website of the Federal Reserve Bank of New York. As of the most recent update on October 23, 2020, the SOFR rate was 0.05%.