BANGKOK, Sept 1 (Reuters) - Thailand has started using a new overnight repurchase rate (THOR) after a transaction between Kasikornbank and CIMB Thai Bank, the central bank said on Tuesday.
The overnight indexed swap, conducted on Monday, marked a positive start for creating liquidity for market participants in using the THOR reference rate, Assistant Governor Vachira Arromdee said in a statement.
Separately, Kasikornbank said in a statement the transaction was a critical first step to set the stage for new markets for THOR-linked derivatives and cash products.
THOR, first established in April, is an alternative reference rate in response to the cessation of the London interbank offered rate (LIBOR) at the end of next year.
It would reflect local financial market conditions and meet international standards for financial benchmarks, according to the central bank.
For details on THOR www.bot.or.th/App/THOR/en
Reporting by Orathai Sriring Editing by Ed Davies
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