Significant milestone in the South African benchmark reform journey
The Market Practitioners Group (MPG) announced the official cessation date for the Johannesburg Interbank Average Rate (JIBAR) on 3 December 2025, at its annual conference in Sandton. This marks a significant milestone in the South African benchmark reform journey, and we encourage our clients to continue taking proactive steps to ensure readiness for the transition.
JIBAR Cessation Date
The MPG has confirmed that all JIBAR tenors will either cease to be provided by any administrator or will no longer be representative immediately after 31 December 2026. The announcement by Dr Rashad Cassim, Deputy Governor of the South African Reserve Bank can be viewed here SARB Publication.
Credit Adjustment Spread (CAS) Fixing
As a result of the MPG announcement, the “Credit Adjustment Spread” (CAS) to be applied in JIBAR fallbacks has been fixed effective from 3 December 2025. This provides certainty on the future terms of contracts referencing JIBAR that include robust fallback provisions using Credit Adjustment Spreads.
Industry Milestones
The next key milestone is the “No New JIBAR” date of 31 March 2026. From this date, no new JIBAR-linked contracts may be issued. This milestone supports the continued adoption of the South African Rand Overnight Index Average (ZARONIA) and will help phase out legacy JIBAR exposures.
The SARB will publish an overview of the approved dispensations and detailed guidance on the milestone framework, with relevant exemptions for continued use of JIBAR. The official paper is expected to be published on the South African Reserve Bank (SARB) website via the MPG Media Releases page early 2026.
Transition Pathways
With the cessation date confirmed and the steady increase in ZARONIA-linked product issuance, the industry’s focus now shifts to the various transition pathways. With the CAS now fixed, active transition efforts are encouraged and can commence, and the foundational elements for passive transition can be implemented.
For more information on the active and passive transition approaches across different products, the MPG plans to publish the approved MPG Transition Recommendation Paper via the MPG Media Releases page early 2026.
Our Commitment
As an active member of the MPG working groups, Standard Bank has established a dedicated JIBAR Transition Programme to ensure system, contractual, and client readiness across all business units and product lines.