ZARONIA Interest Calculation

In line with the SARB’s recommended methodology, ZARONIA is calculated as a daily rate that is compounded in arrears. The rate is observed retrospectively, and based on the instrument convention, there could be a lookback period and observation shift applicable.

Calculating interest based on a risk-free rate differs from traditional term rates, where interest obligations are known in advance. With ZARONIA, the daily rate fluctuates, and the final interest amount is only known based on the last lookback date before the interest payment date. This requires more active calculation and monitoring. Our calculator can assist clients to calculate their interest.

Please find the below link to our ZARONIA calculator: (please note that the calculator will assist in calculating interest from the ZARONIA rates already published)

ZARONIA Calculator: JIBAR to ZARONIA Transition South Africa

Here is the link for the ZARONIA rate published by the SARB:

ZARONIA interest rate benchmark

Here are also links to the various instruments and conventions published by the SARB:

Market conventions for ZARONIA-linked loan market instruments

Market conventions for ZARONIA-linked bond market instruments

Market conventions for ZARONIA-linked money market instruments

Consultation on market conventions for ZARONIA-based derivative instruments