The Bank of Thailand currently administers and publishes two reference rates:
- the Thai Baht Interest Rate Fixing (“THBFIX”), which uses USD LIBOR as a component, and is more widely used as a reference rate for (a) derivatives, notes and loans, and (b) market-to-market valuations; and
- the Bangkok Interbank Offered Rate (“BIBOR”), which is a forward looking interest rate benchmark reflecting the Thai Baht local market that was introduced in 2005 but, due to a lack of underlying liquidity, is not often preferred.
The demise of LIBOR in 2021 will affect the THBFIX reference rate but not BIBOR, which will continue to be published by the Bank of Thailand.
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