South African Reserve Bank sets 31 December 2026 as the final publication date for Jibar and confirms permanent cessation

The South African Reserve Bank (SARB) published an update to its Johannesburg Interbank Average Rate (Jibar) transition plan, confirming that Jibar will be permanently discontinued immediately after its final publication on 31 December 2026. All Jibar tenors will cease to be provided and will be considered non-representative as of that date. The SARB linked the decision to structural weaknesses in the benchmark and a sustained decline in the market underpinning it, which it said have created vulnerabilities that cannot be resolved in the foreseeable future. The South African Rand Overnight Index Average (ZARONIA) was designated in 2022 by the SARB and the Market Practitioners Group (MPG) as the preferred successor rate, with the MPG producing reference materials including recommended market conventions, fallback language and the transition plan; ZARONIA is based on actual transactions and calculated as a trimmed, volume-weighted mean of interest rates paid on eligible unsecured overnight deposits. Market participants are encouraged to accelerate transition efforts, reduce reliance on Jibar, ensure operational readiness for ZARONIA and incorporate appropriate fallback provisions into relevant financial contracts. The SARB, the MPG and the Financial Sector Conduct Authority will continue to provide guidance, and the release notes that it does not suggest Jibar will become unrepresentative before 31 December 2026.