(MENAFN) On Tuesday, the Shanghai Interbank Offered Rate (Shibor), a key indicator reflecting the borrowing costs within China's interbank market, saw a modest uptick of 0.8 basis points, reaching 1.788 percent. This movement in Shibor was accompanied by varied changes across different lending periods: the seven-day rate experienced a slight decrease of 0.7 basis points, settling at 1.824 percent, while the one-month rate also saw a dip of 0.9 basis points, reaching 1.963 percent. Notably, the one-year rate exhibited a more substantial drop, declining by 1.7 basis points to 2.091 percent.

Shibor serves as a fundamental benchmark for assessing the prevailing lending rates in China's interbank market. Calculated by taking the arithmetic mean of all interbank RMB lending rates offered by a designated group of 18 commercial banks with robust credit standings, Shibor is formulated to reflect the unsecured nature of these transactions. It is worth noting that in its computation, the four highest and lowest quotations are excluded to ensure a balanced representation of prevailing market conditions.

This nuanced snapshot of Shibor movements provides insights into the dynamics of liquidity and credit conditions within China's financial system. As a vital parameter influencing the cost of funds for banks and financial institutions, Shibor fluctuations can have broader implications for monetary policy decisions, market sentiment, and overall economic stability.

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