South African Reserve Bank postpones Jibar cessation to 31 May 2027 to finalise legacy contract arrangements

The South African Reserve Bank (SARB) has postponed cessation of the Johannesburg Interbank Average Rate (Jibar) from 31 December 2026 to 31 May 2027. Publication of all Jibar tenors will stop after the revised date. The five-month extension addresses uncertainty over whether legislation for tough legacy contracts, and the arrangements needed to implement it, will be ready before the original deadline. These contracts are particularly difficult to amend to reference an alternative benchmark, often because they involve complex transactions and require consent from multiple parties. The extension revises the timetable announced in December 2025 without changing the transition to the South African Rand Overnight Index Average (ZARONIA), which remains the preferred successor rate. Market participants are still expected to reduce reliance on Jibar and increase their use of ZARONIA in financial contracts. The additional time should be used to resolve outstanding contractual, system and operational requirements. SARB and the Market Practitioners Group will continue developing the transition framework, including guidance on Term ZARONIA. FTSE Russell was appointed its administrator in April 2026, and the term rate is based on ZARONIA overnight index swap market activity. Following consultations and a six-month prototype observation period, Term ZARONIA will be available for specific uses that SARB will define shortly. SARB intends to use it to determine Synthetic Jibar, one of the designated replacement benchmarks for tough legacy contracts.