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What is your friend's ethnic background?

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This could simply be a Hispanic American respelling of Yvette. Hispanics in the USA often spell Yvette as Ivette, and they pronounce "b" and "v" the same in Spanish, so you will see those two letters replacing each other. I've seen Banesa as a respelling for Vanessa in the Hispanic American community.

Possibly a variant or misspelling of Yvette?

It sounds to me like it could be a diminutive of Isabel, since Ibby is a traditional nickname for it, and Ibette could be a further diminutive.

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