LIBOR stands for the London Interbank Offered Rate. It is the interest rate at which banks can borrow funds from other banks in the London interbank market. LIBOR is calculated and published daily for various currencies and loan durations, and it serves as a benchmark for short-term interest rates worldwide. LIBOR is used in a wide range of financial transactions, including derivatives, bonds, loans, and mortgages. However, due to concerns about the accuracy and reliability of LIBOR, it is being phased out and will be replaced by alternative benchmark rates in many countries.