After sparking controversy and scandals, Britain cancels the interest rate between banks for most currencies


The British Market Regulatory Authority (FCA) said yesterday that the interbank interest rate, “Libor”, which was a global reference but has become controversial after many scandals, will no longer be used for most currencies, starting from December 31st. This year. “
According to the “French”, “Libor” has always been the reference interest rate between banks in the financial world, and it had an impact on a huge mass of financial products, especially in the loans granted to families and companies.
The UK Authority promised in late January that the contracts, which use LIBOR as the benchmark rate, still account for $ 260,000 billion.
The authority said in a statement that it “and the Bank of England have clearly stated in recent years” that the absence of an active market has made it impossible to maintain the “LIBOR” which has become inconvenient.
Starting from December 31st, the LIBOR rate will not be updated against the pound, the euro, the Swiss franc and the Japanese yen, as well as some US rates, as the latest dollar rates have been extended until June 30, 2023.
“The time remaining is limited,” said Andrew Bailey, governor of the Bank of England, in a statement. “My message to companies is clear: act now to finish the transition before the end of the year.”
The “Libor” rate is calculated based on the major international banks, which announce from London the rate that they believe they will be able to adopt to borrow a “reasonable” amount from other banks for periods ranging between one day and one year.
However, in 2012, several banks involved in calculating the rates were accused of cheating the mechanism in their favor.
And large banks have paid huge fines, including “Deutsche Bank”, “UPS”, “RSB”, “Société Générale” and “Rabobank”, totaling billions of dollars. Tom Hayes, a businessman, was finally released from prison after serving half his 11-year sentence in this case.
In addition, “Halifax” mortgage lender said yesterday, “The growth of British house prices slowed for the third month in a row in February”, in a new indication that the pandemic-driven boom in the housing market in Britain is dissipating.
According to “Reuters”, “Halifax” reported that house prices increased 5.2 per cent on an annual basis, after a rise of 5.4 per cent in January.
In February alone, house prices fell 0.1 per cent month-on-month after falling 0.4 per cent in January.
On the other hand, the giant Amazon Group in the field of e-commerce launched yesterday for the first time outside the United States, a supermarket that allows shopping without going through the box, in a new stage in the intense competition with traditional stores.
According to the “French”, the network indicated in a statement that the “Amazon Fresh” store in the “Ealing Broadway” commercial “center” is the first store in Britain to allow tobacco and then go out directly “without waiting at a box to pay, and that the store is the first non-default of the giant network.” Outside the United States.
Customers simply scan a barcode on their smartphones upon entry, then shop, choose their purchases, and then exit directly.
And without the need to go over the box, the value of every commodity that the customer pulls from the shelf is automatically deducted from his account through the application installed on his phone.
The store works through sensors, cameras and algorithms that work with “deep learning” technology, which allows the machine to learn automatically, according to a promotional video published by “Amazon”.
The store offers a wide variety of products that carry the “Made by Amazon” brand, including meat, fish, vegetables, baked goods, prepared foods and basic necessities.
The store will be similar to 20 stores for “Amazon Go” in the United States, but it will carry the “+ Fresh +” trademark, originally used in Britain for electronic grocery, with a series of other sites scheduled to open in London.
The pandemic strengthened the main “Amazon” site in the distribution sector, in light of the closure measures, which forced hundreds of millions of people around the world to go home for many months.


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