Close collaboration: Klibor was introduced in June 1987 as an official indicator of the conditions in the interbank money market. The rates that the Klibor contributors submit for Klibor setting indicate the rates that they are willing to lend ringgit funds for the relevant tenors to interbank players, and are mainly used as reference for other products such as the floating leg of interest rate swaps, options, futures and structured products.
PETALING JAYA: Bank Negara has issued the enhanced standards on the Kuala Lumpur Interbank Offered Rate (Klibor) Rate Setting Policy Document that outlines the phasing out of the nine-month Klibor rate effective Jan, 1 2018.
In a statement, the central bank said the nine-month Klibor should not be used as a reference by market participants from Jan 1, 2017 for new contractual agreements.
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