Overview of Money Market Rates

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The RUONIA rate, to which the coupons of a significant portion of exchange-traded floating-rate bonds are linked, has decreased to 16.29%.

RUONIA (the average rate of ruble-denominated overnight loans) is the interest rate applied by banks when providing short-term loans to each other for a period of one day ("overnight").

Every day, this rate is determined by calculating the average value of interbank lending operations among 35 leading Russian banks and is published on the official website of the Central Bank of Russia.

The RUSFAR ON RUB (overnight in rubles) rate has adjusted to 16.35%.

The RUSFAR ON CNY (overnight in yuan) rate is 0.1%.

The RUSFAR 1M rate for a one-month period is 16.35%.

The RUSFAR 3M rate for a three-month period is 16.34%.

It is important to note that the RUSFAR rate reflects the cost of borrowing funds and the level of profitability of money market instruments.

RUSFAR represents the average rate of repo operations conducted with the participation of a central counterparty over a certain time interval.

The Central Bank of Russia has recognized the RUSFAR rate as meeting the established criteria for financial indicators.

More than 200 participants connected to the central counterparty mechanism for repo operations form the market rate anonymously for standard periods: overnight (ON), week (1W), two weeks (2W), month (1M), three months (3M).

Additionally, around 20 market makers support the quotations.

It should be noted that the money market signals expectations of the key rate at the level of 16-17%. This is evidenced by the indicators of money market rates: RUONIA and RUSFAR.

This overview was presented by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Faculty "Higher School of Management" of the Financial University under the Government of the Russian Federation.