Libor will cease to exist with effect from June 30, 2023. The benchmarks replacing it are better structured. As a start there is one for each of Libor’s five currencies – the secured overnight financing rate Sofra for the dollar, Sonia for the pound, Tonar for the yen, Saron for the Swiss franc and the euro short-term rate (€str) for the euro. The way this works is that they measure borrowing costs on actual transactions, rather than trusting bankers to respond honestly to a daily questionnaire, as was the basis of determining the Libor rate. The US dollar Sofra, report rates in the repo market (for loans secured against government bonds) rather than for bank deposits. CFOs, specifically those with large treasuries, are struggling through this transition on negotiations with lenders and money managers. It will be a few months before things begin to settle. 

This podcast provides a history of Libor and the events that have led to its demise.