The RUONIA rate dropped to 15.57% on Wednesday.

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The RUONIA rate dropped to 15.57% on Wednesday.

It is worth noting that the coupons of the majority of floaters bonds are linked to the RUONIA rate.

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

The rate is calculated daily by refining the average value of interbank lending operations among the top 35 Russian banks and is published on the official website of the Bank of Russia.

The RUSFAR ON RUB (overnight, rubles) rate on Wednesday was 15.16%.

RUSFAR ON CNY (overnight, yuan) was 0.32%.

The RUSFAR rate serves as a key benchmark:

- It indicates the level of rates in the Russian money market,

- It is formed based on the average values of repo transactions with the central counterparty,

- It is included in the list of financial indicators approved by the Bank of Russia.

It is important to note that RUONIA is an unsecured rate, while RUSFAR is a secured rate, but both are key indicators of the cost of money in the market and are used for floating rates in bonds.

RUONIA (Ruble Overnight Index Average) is the rate of unsecured overnight ruble lending, calculated by the Bank of Russia based on the operations of the top 35 banks, while RUSFAR (Russian Secured Funding Average Rate) is the rate of secured funding (repo with the central counterparty), calculated by the Moscow Exchange for different terms (ON, 1M, 3M, etc.).

This review 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.