Tehran, YJC. Singapore’s central bank and a group of lenders are considering putting an end to the city-state’s U.S. dollar-linked interbank lending rate as regulators worldwide probe allegations of rigged benchmark borrowing costs, a person with knowledge of the matter said.
Members of the Singapore Foreign Exchange Market Committee examined the proposal in a Jan. 22 meeting, during a discussion of the Monetary Authority of Singapore’s review of benchmark rates, said the person, who asked not to be identified as the discussions are confidential. The group may instead use the U.S. dollar London interbank offered rate, the person said.
The banks are reviewing how Singapore interbank offered rates are set amid probes into rate manipulation worldwide.
"People are losing confidence because of manipulation,” said Benedict Koh, a finance professor at Singapore Management University’s Lee Kong Chian School of Business.
"Given what has transpired, it’s important for the authorities to provide more transparency and audit by an independent body so that rates are fairly set and not biased to financial institutions that have conflict of interest.”