Jibar phaseout delayed five months to May 2027
South African Reserve Bank (SARB) Deputy Governor Rashad Cassim said Jibar will end on May 31, 2027, five months later than planned. At the Market Practitioners Group Conference in Johannesburg, he cited unfinished legislation for legacy contracts.
Legislation sets the transition pace
The Johannesburg Interbank Average Rate (Jibar) will cease on May 31, 2027, rather than December 31, 2026.
Reform began in 2018.
Some legacy contracts cannot be amended before cessation or transition automatically.
Proposed Financial Sector Regulation Act amendments would permit replacement benchmark designation, but still require parliamentary approval and presidential assent.
Clearing houses must coordinate derivatives conversion to the South African Rand Overnight Index Average (ZARONIA) with cessation to limit basis, valuation, hedging and operational risks.
Cassim said the delay would not create major new transition costs.
The SARB, National Treasury and Financial Sector Conduct Authority will support the legislative process; its timing remains uncertain.
Beyond the benchmark deadline
Global ZARONIA derivative exposures exceeded R18.5 trillion as of September 2026, while Jibar exposures still exceeded R98 trillion.
ZARONIA maintained a small, stable spread to the policy rate.
Cassim welcomed overnight index swaps and Treasury Floating Rate Notes linked to ZARONIA.
He also supported ending Prime, fixed 350 basis points above the SARB rate, to simplify loan pricing.
Further priorities include deeper corporate bond markets as government issuance declines and repo reforms tackling regulatory constraints and market plumbing.
More time, same obligations
Cassim said the delay does not reverse Jibar's discontinuation or reflect concerns about ZARONIA.
He called on firms to reduce remaining exposures, complete system changes and communicate clearly with clients and counterparties.
The additional time is intended to support an orderly transition.