Key South African rate ‘bears no relation’ to market
Jibar based on product that rarely traded during two-year period, says central bank official
Urgent reform is needed to bring the Johannesburg interbank average rate (Jibar) in line with new standards for key lending benchmarks, the deputy governor of South Africa’s central bank has warned.
“At a fundamental level, it is unsustainable that at least R40 trillion [$2.75 trillion] worth of financial contracts are priced off a three-month reference rate derived from daily indicative prices of a market that, on average, is underpinned by only R66 million worth of transactions,” said the
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