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​Thai Reference Rate and LIBOR Transition

          The Financial Conduct Authority (FCA), the regulator of London Interbank Offered Rate (LIBOR) of the five major currencies (USD, EUR, GBP, JPY, and CHF) announced the future cessation or loss of representativeness of LIBOR by end 2021 for EUR, GBP, JPY, and CHF LIBOR and by mid 2023 for USD LIBOR. Consequently, significant amount of outstanding LIBOR transactions will be affected directly and indirectly.

          In Thailand, LIBOR is not only referenced in financial transactions, but USD LIBOR is also a component in the calculation of Thai Baht Interest Rate Fixing (THBFIX), which is widely utilized in financial transactions, both cash and derivative products, as a reference rate for pricing, valuation and cash flow determination. LIBOR discontinuation also poses significant impacts on Thai financial market; as a result, market participants should closely monitor the transition development and prepare for the upcoming transition.

          The Bank of Thailand (BOT), in collaboration with the Thai Bankers' Association (TBA) and the Association of International Banks (AIB), has established the Steering Committee on Commercial Banks' Preparedness on LIBOR Discontinuation (the committee) whose key task is to ensure the smooth and fairest transition by focusing on 3 main areas:

          1. Amendment of financial contracts referencing LIBOR and THBFIX including loan, notes and derivative contracts.
          2. Preparation of commercial banks for LIBOR transition.
          3. Development plan for alternative Thai reference rate.

          The committee recommends market participants to assess contract outstanding referencing LIBOR or THBFIX in order to assess initial impacts. Moreover, market participants should consult with commercial banks or counterparties in advance to amend existing contracts in timely manner. To keep the market participants informed, progress reports along with conclusions are available on the BOT website.

Thai Baht Interest Rate Fixing (THBFIX)
Thai Baht Interest Rate Fixing (THBFIX) and components
Market consultation on Adjusted THBFIX and Responses to Market Feedbacks
Fallback Rate (THBFIX)
Fallback Rate (THBFIX)
Thai Overnight Repurchase Rate (THOR)
Thai Overnight Repurchase Rate (THOR)
THOR Calculator
A User’s Guide to Thai Overnight Repurchase Rate (THOR)
Overnight rate convention examples
Recommended Interbank Derivative Conventions Referencing THOR
Pilot Lending Practice for Loans referencing Thai Overnight Repurchase Rate (THOR)
Volume and number of THOR OIS transactions
Thailand’s Preparation to Support LIBOR Discontinuation
Transition Milestones to THOR (revised on 27 Jan 21)
Transition Roadmap of Thai Reference Rate from THBFIX to THOR (revised on 27 Jan 21)
“LIBOR Transition and Benchmark Reform” seminar
Preparation for LIBOR Transition
ARRC Recommended Best Practices for Completing the Transition from LIBOR
ARRC Internal Systems and Processes: Transition Aid For SOFR Adoption
ARRC Buy-Side/Asset Owner Checklist
ARRC Practical Implementation Checklist for SOFR Adoption
Guideline for Contract Amendment of Other Countries
ISDA's website on Benchmark Reform and Transition from LIBOR
Recommendation of Fallback Contract Language for non-derivatives contracts by Alternative Reference Rates Committee (ARRC)
ICMA's website on Benchmark Reform and Transition to Risk-free Rates
Related Documents
Beyond LIBOR: a primer on the new benchmark rates article by Bank for International Settlements (BIS)
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About BOT
  • Roles & History
  • Good Corporate Governance
  • Laws And Regulations
  • Organization And Executives
  • Committee
  • Financial Reports
  • Banknotes
  • Museum
Monetary Policy
  • Monetary Policy Committee (MPC)
  • MPC Knowledge
  • Economic Conditions
  • Research and Conference Papers
  • Regional Economy
Financial Institutions
  • Financial Institutions Policy Committee
  • Thailand’s Financial Institutions​
  • BOT Roles and Responsibilities
  • Financial Institutions Supervision in Practice
  • Financial Institutions Policy
  • Supervision of Other Financial Corporations
  • Supervisory Coordination
Financial Markets
  • Monetary Operations
  • Financial Market Development
  • Foreign Exchange Market
  • Foreign Reserves Management
  • Foreign Exchange Regulations
  • Thai Reference Rate and LIBOR Transition
  • Bond Investor Registration
Payment Systems
  • Payment Systems Committee (PSC)
  • Payment Systems Policy
  • Oversight of Payment Systems
  • Payment Systems Act
  • Oversight of e-Payment Service Providers
  • BOT's Payment System Services
  • Payment Systems Standards
  • Payment Systems Notification & Circulars
  • Financial Technology
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