The Johannesburg Interbank Agreed Rate
[{{cite web, title=A review of the rate-setting process of the Johannesburg Interbank Agreed Rate (Jibar) as an interest rate benchmark, url=https://www.resbank.co.za/Lists/News%20and%20Publications/Attachments/5292/JibarReview.pdf, publisher=South African Reserve Bank, date=November 2012, page=21] (JIBAR) is the
money market
The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less.
As short-term securities became a commodity, the money market became a compon ...
rate, used in
South Africa
South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
. It is calculated as the average interest rate at which banks buy and sell money.
This rate is calculated daily by the
South African Futures Exchange
The South African Futures Exchange (Safex) is the futures exchange subsidiary of JSE Limited, the Johannesburg-based exchange. It consists of two divisions; a financial markets division for trading of equity derivatives and an agricultural marke ...
as the average
prime lending rate
A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to customers with good credit. Some variable interest rates may be expressed as a percentage above or below prime rate.
Use in dif ...
quoted independently by a number of different banks. The rate is available in one-month, three-month, six-month and twelve-month
discount terms. In particular, the three-month JIBAR rate is used as a benchmark of short-term interest rate movements.
The rate is calculated daily after all of the rates are received. It is calculated as a
yield and then converted into a
discounted rate. The JIBAR rate is available daily from
Thomson Reuters
Thomson Reuters Corporation ( ) is a Canadian multinational media conglomerate. The company was founded in Toronto, Ontario, Canada, where it is headquartered at the Bay Adelaide Centre.
Thomson Reuters was created by the Thomson Corpora ...
.
See also
*
LIBOR
The London Inter-Bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is u ...
*
Prime rate
A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to customers with good credit. Some variable interest rates may be expressed as a percentage above or below prime rate.
Use in dif ...
*
TED spread
The TED spread is the difference between the interest rates on interbank loans and on short-term U.S. government debt ("T-bills"). TED is an acronym formed from ''T-Bill'' and ''ED'', the ticker symbol for the Eurodollar futures contract.
Init ...
*
LIBOR-OIS spread
An overnight indexed swap (OIS) is an interest rate swap (''IRS'') over some given term, e.g. 10Y, where the periodic fixed payments are tied to a given fixed rate while the periodic floating payments are tied to a floating rate calculated from a ...
References
Finance in South Africa
Reference rates