An interbank lending and borrowing interest rate stated in Hong Kong dollars. It is similar to the London Interbank Offer Rate (LIBOR). Banks use the interbank market to transfer funds and currency, and to manage liquidity. Banks go to the Hong Kong interbank market to borrow money at the HIBOR rate if their short-term cash reserves are reduced. The HIBOR is often used as a reference rate by Asian economy lenders and borrowers.