No data available for the deliverable: Move to new benchmark rate for money markets by phasing out JIBAR benchmark rate.
No data available for the deliverable: Move to new benchmark rate for money markets by phasing out JIBAR benchmark rate.
No data available for the deliverable: Move to new benchmark rate for money markets by phasing out JIBAR benchmark rate.
No data available for the deliverable: Move to new benchmark rate for money markets by phasing out JIBAR benchmark rate.
No data available for the deliverable: Move to new benchmark rate for money markets by phasing out JIBAR benchmark rate.
Summary
The reform involves a phased transition plan, industry consultation, with International Swaps and Derivatives Association (ISDA) fallback protocols and new conventions for cash market instruments, with JIBAR set to cease by December 2026.
View DetailsIs it working?
The transition is progressing, with strong regulatory support and industry engagement. Full completion is expected by the end of 2026. The reform is closely monitored, with regular updates and industry feedback.
Actions
The derivatives market is transitioning smoothly, but adoption in the cash market is slower. Legacy contract remediation and liquidity building are ongoing.
Are there plans?
The ISDA fallback protocol was launched in April 2025, cash market conventions published and regulatory exemptions granted for ZARONIA-linked instruments.
Is it on the agenda?
The transition is a top priority for the SARB, FSCA and Market Practitioners Group, with clear timelines and industry guidance.
Goals
To ensure a smooth transition from the JIBAR benchmark to ZARONIA, aligning with global best practice and reducing systemic risk.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)
Summary
The reform involves a phased transition plan, industry consultation, with International Swaps and Derivatives Association (ISDA) fallback protocols and new conventions for cash market instruments, with JIBAR set to cease by December 2026. This is a SARB-led phased migration from JIBAR to ZARONIA for money market benchmarks, daily rate now published and contracts migrating. ZARONIA replaces JIBAR, daily compounded rate publicly available; contracts, reporting - sector compliance is underway.
Is it working?
The transition is progressing, with strong regulatory support and industry engagement. Full completion is expected by the end of 2026. The reform is closely monitored, with regular updates and industry feedback.
Actions
The derivatives market is transitioning smoothly, but adoption in the cash market is slower. Legacy contract remediation and liquidity building are ongoing. Market adaptation is positive with the ongoing transition on schedule.
Are there plans?
The ISDA fallback protocol was launched in April 2025, cash market conventions published and regulatory exemptions granted for ZARONIA-linked instruments. There is ongoing migration, education, market communication and legacy contract management.
Is it on the agenda?
The transition is a top priority for the SARB, FSCA and Market Practitioners Group, with clear timelines and industry guidance and is part of SARB Financial Markets oversight, sector annual plans as well as Cabinet briefings.
Goals
To ensure a smooth transition from the JIBAR benchmark to ZARONIA, aligning with global best practice and reducing systemic risk.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)
Summary
Deliverables include: (i) publication of a JIBAR fallback methodology recommending that fallback rates equal compounded ZARONIA plus a CAS based on the five‑year historical median JIBAR–ZARONIA spread; (ii) a JIBAR Transition Plan and “ZARONIA First” guidance covering derivatives and cash markets, including milestones for infrastructure readiness and conventions; (iii) adoption of ZARONIA‑linked products in derivatives and cash markets (loans, bonds, MMIs); and (iv) MPG recommendations for a retail‑market transition, including treatment of mortgages and other JIBAR‑linked retail credit.
View DetailsIs it working?
South Africa has made substantial progress: ZARONIA is live and used in derivatives and cash products; fallback and CAS methodologies are agreed; and transition plans for wholesale and retail markets are in place. The remaining challenges are ensuring timely active transition of legacy JIBAR contracts, handling “tough legacy” positions (which may require legislation or regulatory intervention) and managing the pricing, valuation and systems implications for banks and customers, particularly in retail products where understanding of the new benchmark is low.
Actions
Actions already taken: (i) SARB and the MPG have published the ZARONIA methodology and policies, confirming ZARONIA as the preferred successor rate; (ii) the MPG has issued a final JIBAR Fallback Methodology recommendation, specifying compounded ZARONIA plus CAS, aligned with ISDA global conventions; (iii) a JIBAR Transition Plan – milestones update (August 2025) outlines phases for derivatives and cash markets and confirms that market infrastructure is ready for ZARONIA‑based trading; (iv) the MPG’s Cash‑Market Workstream has recommended a ZARONIA‑based fallback for cash products and reported that, from May 2025, infrastructure supports ZARONIA in all cash instruments; and (v) in February 2026, the MPG published “Recommendations for a ZARONIA Transition in the Retail Market” covering retail credit, especially mortgages.
Are there plans?
Planned steps include: (i) formal announcement of JIBAR cessation (expected in 2025), followed by final publication / cessation by end‑2026; (ii) continued rollout of the “ZARONIA First” initiative, encouraging new derivatives and cash products to reference ZARONIA rather than JIBAR; (iii) legislative or regulatory solutions for “tough legacy” contracts that cannot be practically amended before cessation; and (iv) further MPG work on term‑rate options and detailed guidance for retail‑credit markets, including recommendations for mortgages and other JIBAR‑linked retail loans.
Is it on the agenda?
The transition is a key part of SARB’s benchmark‑reform and financial‑market‑development agenda, overseen through the MPG. SARB communications emphasise that moving from quote‑based JIBAR to transaction‑based ZARONIA aligns South African markets with IOSCO benchmark principles and post‑LIBOR reforms. Budget and market commentary link benchmark reform to broader objectives of transparency, integrity and resilience in local financial markets.
Goals
To replace the Johannesburg Interbank Average Rate (JIBAR) with the South African Rand Overnight Index Average (ZARONIA) as the main interest‑rate benchmark, and implement robust fallback and transition arrangements across cash and derivatives markets to reduce benchmark‑manipulation risk and align with global near risk‑free rate reforms.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)
Summary
SARB formally announced JIBAR's permanent discontinuation on 3 December 2025. The Credit Adjustment Spread (CAS - the fixed margin added to ZARONIA on legacy contracts) was fixed on the same date. The FSCA and Prudential Authority issued Joint Communication 1 of 2026 in March 2026, setting out supervisory expectations. The "No New JIBAR."' regulatory directive came into effect on 1 May 2026. Standard Bank issued the first listed ZARONIA-linked bond. Rand Merchant Bank (RMB) executed the first South African Rand Overnight Index Average (ZARONIA) linked trade on Tradeweb in early 2026. Full JIBAR cessation: 31 December 2026. ZARONIA becomes the primary benchmark from 1 January 2027.
View DetailsIs it working?
The transition is on a firm regulatory timeline and has passed two decisive milestones: Credit Adjustment Spread fixed (3 December 2025) and the No New JIBAR directive in effect (1 May 2026). The first ZARONIA-linked market instruments have been issued and traded, confirming the new benchmark is viable. However, approximately R45 trillion in total legacy JIBAR exposure remains outstanding as at end-2025, and each contract requires individual analysis and often client consent to transition. With only seven months to cessation, institutions that have not started active transition face a real operational risk. The market practitioners group (MPG) tax white paper reveals that tax aspects of the transition mechanics are still being resolved, adding complexity. The Financial Sector Regulation Act amendment for 'tough legacy' contracts must be enacted before 31 December 2026.
Actions
JIBAR cessation announced 3 December 2025. Credit Adjustment Spread fixed. FSCA/PA Joint Communication 1 of 2026 issued (March 2026). 'No New JIBAR' directive in effect from 1 May 2026. Bloomberg publishing daily ISDA fallback rates from April 2025. First ZARONIA-linked bond (Standard Bank) and first ZARONIA trade (RMB on Tradeweb) completed in early 2026. Financial Sector Regulation Act amendment for tough legacy contracts being prepared.
Are there plans?
SARB MPG Transition Approach Recommendations (December 2025) cover active contract transition, fallback language and the Financial Sector Regulation Act amendment for "tough legacy" contracts. Designated Replacement Rate notices are expected Q4-2026.
Is it on the agenda?
Yes. SARB, FSCA, PA and Cabinet Financial Cluster maintain this as an active monthly priority. The market practitioners group (MPG), a joint public-private body, is the formal implementation vehicle. The transition is a key part of SARB’s benchmark reform and financial market development agenda, overseen through the MPG. SARB communications emphasise that moving from quote‑based JIBAR to transaction‑based ZARONIA aligns South African markets with IOSCO benchmark principles and post‑LIBOR reforms. Budget and market commentary link benchmark reform to broader objectives of transparency, integrity and resilience in local financial markets.
Goals
To replace the Johannesburg Interbank Average Rate (JIBAR) with the South African Rand Overnight Index Average (ZARONIA) as the main interest‑rate benchmark, and implement robust fallback and transition arrangements across cash and derivatives markets to reduce benchmark‑manipulation risk and align with global, near risk‑free rate reforms. The transition should be completed before JIBAR is permanently discontinued on 31 December 2026.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)
Summary
SARB formally announced JIBAR's permanent discontinuation on 3 December 2025. The Credit Adjustment Spread (CAS - the fixed margin added to ZARONIA on legacy contracts) was fixed on the same date. The FSCA and Prudential Authority issued Joint Communication 1 of 2026 in March 2026, setting out supervisory expectations. The "No New JIBAR."' regulatory directive came into effect on 1 May 2026. Standard Bank issued the first listed ZARONIA-linked bond. Rand Merchant Bank (RMB) executed the first South African Rand Overnight Index Average (ZARONIA) linked trade on Tradeweb in early 2026. Full JIBAR cessation: 31 December 2026. ZARONIA becomes the primary benchmark from 1 January 2027.
View DetailsIs it working?
The transition is on a firm regulatory timeline and has passed two decisive milestones: Credit Adjustment Spread fixed (3 December 2025) and the No New JIBAR directive in effect (1 May 2026). The first ZARONIA-linked market instruments have been issued and traded, confirming the new benchmark is viable. However, approximately R45 trillion in total legacy JIBAR exposure remains outstanding as at end-2025, and each contract requires individual analysis and often client consent to transition. With only seven months to cessation, institutions that have not started active transition face a real operational risk. The market practitioners group (MPG) tax white paper reveals that tax aspects of the transition mechanics are still being resolved, adding complexity. The Financial Sector Regulation Act amendment for 'tough legacy' contracts must be enacted before 31 December 2026.
Actions
JIBAR cessation announced 3 December 2025. Credit Adjustment Spread fixed. FSCA/PA Joint Communication 1 of 2026 issued (March 2026). 'No New JIBAR' directive in effect from 1 May 2026. Bloomberg publishing daily ISDA fallback rates from April 2025. First ZARONIA-linked bond (Standard Bank) and first ZARONIA trade (RMB on Tradeweb) completed in early 2026. Financial Sector Regulation Act amendment for tough legacy contracts being prepared.
Are there plans?
SARB MPG Transition Approach Recommendations (December 2025) cover active contract transition, fallback language and the Financial Sector Regulation Act amendment for "tough legacy" contracts. Designated Replacement Rate notices are expected Q4-2026.
Is it on the agenda?
Yes. SARB, FSCA, PA and Cabinet Financial Cluster maintain this as an active monthly priority. The market practitioners group (MPG), a joint public-private body, is the formal implementation vehicle. The transition is a key part of SARB’s benchmark reform and financial market development agenda, overseen through the MPG. SARB communications emphasise that moving from quote‑based JIBAR to transaction‑based ZARONIA aligns South African markets with IOSCO benchmark principles and post‑LIBOR reforms. Budget and market commentary link benchmark reform to broader objectives of transparency, integrity and resilience in local financial markets.
Goals
To replace the Johannesburg Interbank Average Rate (JIBAR) with the South African Rand Overnight Index Average (ZARONIA) as the main interest‑rate benchmark, and implement robust fallback and transition arrangements across cash and derivatives markets to reduce benchmark‑manipulation risk and align with global, near risk‑free rate reforms. The transition should be completed before JIBAR is permanently discontinued on 31 December 2026.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)