SHIBOR
Shibor is like a big piggy bank where lots of banks put their money together. This piggy bank is actually run by the important people who look after money in a country called China.
When one bank needs money, they can ask to borrow it from the piggy bank, but they have to pay it back with a little bit extra called interest. The amount of interest they have to pay depends on how many other banks also want to borrow money from the piggy bank.
Shibor is important because it shows how much it costs for banks to borrow money from each other in China. It's like a report card for how healthy the banks in China are, because if the interest rate is high, it means the banks are having a harder time borrowing money from each other.
People who look after a lot of money, like investors, pay attention to Shibor because it can affect how much money they make or lose when they invest in China.
When one bank needs money, they can ask to borrow it from the piggy bank, but they have to pay it back with a little bit extra called interest. The amount of interest they have to pay depends on how many other banks also want to borrow money from the piggy bank.
Shibor is important because it shows how much it costs for banks to borrow money from each other in China. It's like a report card for how healthy the banks in China are, because if the interest rate is high, it means the banks are having a harder time borrowing money from each other.
People who look after a lot of money, like investors, pay attention to Shibor because it can affect how much money they make or lose when they invest in China.
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