Market participants should in the meantime aim to actively transition out of Jibar referencing contracts to minimise the stock of legacy contracts that will need to rely on the adjusted ZARONIA as a fallback rate.
Market participants have become accustomed to using forward-looking term rates, where the interest rate is known in advance.15 While forward-looking term rates are helpful in ascertaining future cash flows and, in so doing, assist firms and investment funds to plan better, they also expose the investor to unanticipated changes to the short-term rates.