The South African Reserve Bank published a tax white paper and a set of transition milestones to support the market’s move from Jibar to ZARONIA ahead of Jibar’s discontinuation after its final publication on 31 December 2026. The update focuses on potential tax implications of converting legacy Jibar-linked contracts, preparations for a forward-looking ZARONIA term rate, and a market-wide stop to new Jibar issuance. The paper is intended to help market participants evaluate tax consequences that may arise from different approaches to transitioning Jibar-linked contracts to ZARONIA, and the MPG plans to use it as a basis for discussions with relevant authorities on the possibility of issuing formal tax guidance. For a term benchmark, the MPG selected FTSE Russell, a subsidiary of the London Stock Exchange Group, to act as administrator of Term ZARONIA, with final endorsement contingent on sufficient liquidity in ZARONIA derivatives to support a robust and reliable benchmark. Separately, the ‘no new Jibar’ initiative will commence on 1 May 2026, after which market participants should stop issuing new Jibar-referencing financial contracts except in clearly defined and limited cases, while allowing existing Jibar exposures to be maintained, amended or hedged; supervisory expectations are set out in Joint Communication 1 of 2026 issued by the Prudential Authority and Financial Sector Conduct Authority. Comments on the tax white paper are due to the MPG Secretariat by 21 May 2026. The SARB reiterated that the cessation date remains 31 December 2026 and that the release does not suggest Jibar becomes unrepresentative before that date.
South African Reserve Bank 2026-04-22
South African Reserve Bank launches tax white paper consultation and confirms 1 May 2026 no new Jibar cut-off
The South African Reserve Bank has published a tax white paper and transition milestones to support the move from Jibar to the South African Rand Overnight Index Average (ZARONIA) ahead of Jibar’s discontinuation after 31 December 2026. The paper addresses tax implications of converting legacy Jibar-linked contracts, underpins Market Practitioners Group engagement on possible formal tax guidance, and accompanies the selection of FTSE Russell as prospective administrator of a forward-looking Term ZARONIA and the launch of a “no new Jibar” issuance initiative from 1 May 2026, as detailed in Joint Communication 1 of 2026.