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Key South African rate ‘bears no relation’ to market

Jibar based on product that rarely traded during two-year period, says central bank official

south-africa-rand
R40 trillion of contracts tied to market with R66 million of volume, warns Mminele

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

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