LIBOR is being discontinued due to concerns about its reliability and susceptibility to manipulation. The benchmark interest rate’s reliance on estimated borrowing costs reported by banks made it vulnerable to potential misconduct, eroding trust in its accuracy. To enhance transparency, mitigate manipulation risks, and establish a more robust benchmark rate, global financial regulators and industry stakeholders have collaborated to transition from LIBOR to alternative rates, such as SOFR (Secured Overnight Financing Rate), which is based on actual market transactions and provides a more objective representation of borrowing costs.