Financial Markets

The task of implementing monetary policy decisions is undertaken by the Bank’s Financial Markets Department.

The Financial Markets Department implements the interest rate decisions of the MPC through its Monetary Policy Implementation Framework. Since 2022 the SARB has used a surplus system to shape market rates, with the SARB providing an ample supply of bank reserves and then paying the policy rate on overnight deposits of excess reserves by banks, up to certain limits.

The Financial Markets Department is also responsible for the management of the official gold and foreign exchange reserves in accordance with criteria set out in the Bank’s Investment Policy and Guidelines. Reserves play a key role in ensuring that the country will be able to:

cover its external operational needs;
service its foreign exchange liabilities;
cover any foreign currency net imbalances in the balance of payments; and
maintain market confidence in its monetary and exchange rate policies.

Jibar: Post-trade disclosures

The SARB is the administrator of the Johannesburg Interbank Average Rate (Jibar), which is widely used as a reference rate that underpins a significant number of financial contracts and valuations.
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ZARONIA interest rate benchmark

The South African Overnight Index Average (ZARONIA) is a benchmark that reflects the interest rate at which rand-denominated overnight wholesale funds are obtained by commercial banks.
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