Bank of Russia determines interest rate benchmarks as alternative to LIBOR

The listed risk-free interest rate benchmarks are assumed to be used as alternatives to LIBOR (London Interbank Offered Rate) and other indicators to be replaced as part of the global reform of financial benchmarks. All this will improve the resilience of the functioning of the financial market.

Financial indicators, which represent benchmark interest rates, exchange rates, securities and commodity prices, play a key role in the functioning of financial markets and the economy in general. The issue of the fair construction of financial indicators and the availability of procedures preventing their manipulation became especially pressing for regulators in the aftermath of the 2008–2009 financial crisis. At that time, the trigger was the identified instances of manipulation of the rate-setting on the basis of Interbank Offered Rates, key interest rate benchmarks in the money market for unsecured interbank lending transactions.

The Bank of Russia will update the list of alternative financial indicators as needed.