The Philippine central bank announced the introduction of a new reference rate to replace the discredited London interbank offered rate (Libor), which will be officially discontinued on June 30. The move comes as part of a global transition away from Libor, after it was marred by rigging scandals that led to billions in fines for several banks. The new alternative rate will be a provisional solution for Philippine banks, which have transactions worth billions of pesos linked to Libor, until a permanent benchmark rate is established by January 2024. The need for an alternative pricing mechanism is critical, said Johnny Noe Ravalo, assistant governor at Bangko Sentral ng Pilipinas.