Overview of Money Market Rates (RUONIA, RUSFAR)

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The RUONIA rate, which serves as a basis for coupon payments on most exchange-traded bonds with floating yields, stabilized on Thursday at 15.28%.

RUONIA (Russian Overnight Index Average) is an indicative rate for overnight ruble-denominated interbank lending.

This indicator is formed as a weighted average of actual overnight lending transactions between the top 35 largest Russian banks.

RUSFAR ON RUB (overnight in rubles) is 15.52%.

RUSFAR ON CNY (overnight in yuan) is +0.3%.

It should be noted that RUONIA (Ruble Overnight Index Average) is an unsecured overnight lending rate in rubles, calculated by the Bank of Russia based on transactions of the top-35 banks, while RUSFAR (Russian Secured Funding Average Rate) is a secured funding rate (repo with a central counterparty), calculated by the Moscow Exchange for different terms (ON, 1M, 3M, etc.).

It is worth noting that the RUSFAR rate serves as a key benchmark:

- it reflects 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.

The main difference: RUONIA is an unsecured rate, while RUSFAR is a rate for secured transactions, but both are key indicators of the cost of money in the market and are used for floating rates in bonds.

Review 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.