Looking at the shorter term, the interbank market rates suggest that the cycle will turn up again early next year.
This they said would enable the market to smooth out wild interest rate fluctuations currently being experienced in the local interbank money market.
Banks in a net debit position can borrow from other banks on the interbank market, but can also seek liquidity from the central bank.
Its loan book in Britain is funded largely from a British deposit base, with little reliance on the interbank market.
The first Chinese interbank currency market in China opened in Shanghai in 1994, joining the pre-existing commodities and gold exchanges.
Of course, banks have long sent money across borders through standard interbank wire transfers for corporate and individual clients.
During these periods, the interbank swap market closed the shutters, with the consequence that trades beyond even the standard size of $50 million became difficult to execute.
There were little movements in the overnight interbank rates and the borrowing rate averaged 15 percent for most of the week.
In ordinary times, banks usually benefit strongly from interbank rate cuts by the Fed because they lower their cost of funds.
As Russian banks became terrified of lending money to one another, many found it impossible to raise funds on the interbank market.