Overview of Money Market Rates

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The RUONIA rate, which serves as a benchmark for floating-rate bonds, fell to 15.7% on Monday.

It should be noted that the RUONIA rate:

- reflects the average cost of overnight ruble loans in the interbank market,

- is calculated daily by the Bank of Russia based on data from operations of the top 35 banks.

The RUSFAR ON RUB (overnight, rubles) rate on Monday was 15.82%.

RUSFAR ON CNY (overnight, yuan) increased by 0.24% on the first day of the week.

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

- it shows the level of rates in the Russian money market,

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

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

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

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.