Regulatory Alerts2025-04-07 | EPD Circular Letter No. 01Replacement of Term “LIBOR” with “Relevant Benchmark Rate”
The Exchange Policy Department has replaced the term “LIBOR” with “Relevant Benchmark Rate” in paragraph 9(v)(a) of Chapter 19 of the Foreign Exchange Manual to address the permanent discontinuation of LIBOR-based reference rates. This amendment modifies the cost of borrowing framework for Foreign Currency loans extended to Micro Finance Banks and Institutions under the Financial Sector Borrowing from Abroad category. Authorized Dealers must notify their constituents to ensure compliance, particularly by submitting local interest rate quotes whenever international borrowing costs exceed the Relevant Benchmark Rate plus five percent.
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