Jibar cessation delayed five months to May 31, 2027
South African Reserve Bank (SARB) Deputy Governor Rashad Cassim said Jibar cessation will move from December 31, 2026 to May 31, 2027. Speaking at the Market Practitioners Group Conference in Johannesburg, he cited unfinished legislation for legacy contracts.
Legacy contracts hold the clock
Johannesburg Interbank Average Rate (Jibar) cessation requires legislation for contracts that cannot be amended or transitioned automatically.
Proposed Financial Sector Regulation Act amendments would permit replacement benchmarks but still require Parliament's approval and presidential assent.
Clearing houses must coordinate derivatives conversion to limit basis, valuation, hedging and operational risks.
The replacement, South African Rand Overnight Index Average (ZARONIA), uses overnight wholesale deposit transactions.
Cassim reported a small, stable spread to the policy rate.
Global ZARONIA derivative exposures exceeded R18.5 trillion as of September 2026; Jibar exposures still exceeded R98 trillion.
The delay does not reverse cessation or reflect concerns about ZARONIA.
Prime and repo come next
Benchmark reform began in 2018.
Cassim also backed ending the Prime Lending Rate, which sits 350 basis points above the SARB rate and underpins about R4.7 trillion in domestic exposures.
He said removal would simplify loan pricing.
ZARONIA product development includes overnight index swaps and National Treasury floating-rate notes.
Lower government issuance creates room for corporate borrowing.
Unlike the leverage concerns in the International Monetary Fund's latest stability review, South Africa faces too little repo activity; work has identified plumbing and regulatory constraints.
More time, unfinished safeguards
The delay leaves the legal obstacle unresolved rather than removing it.
SARB, National Treasury and the Financial Sector Conduct Authority will support the legislative process, whose timing remains uncertain.
Firms must use the extra months to reduce Jibar exposures, finish system changes and communicate with clients.