The difference in borrowing rates between banks in euros within Europe and those in dollars offshore has flip-flopped. The European Banking Federation's Euribor rate was fixed today at 0.451%, below the 3-month dollar Libor rate from the British Bankers Association at 0.4521%. It's the first time dollar Libor was below Euribor in 4 1/2 years. Alberto Gallo at RBS says that's occurring now because of the ECB's recent easing and "there being less stress short-term in the European banking system."
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