RUONIA Hits 15.25% on Friday, Reflecting Interbank Lending Rate

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RUONIA - the average market rate for overnight interbank lending in Russia, settled at 15.25% on Friday.

The rate is calculated based on transactions of the top 35 Russian banks and is officially published by the Central Bank of Russia (CBR). It also serves as a benchmark for determining the coupon income on most exchange-traded bonds with floating rates.

The RUSFAR ON RUB (overnight in rubles) rate stood at 15.15% on Friday.

RUSFAR ON CNY (overnight in yuan) was 10.31%.

RUONIA is calculated based on the reporting data of major credit institutions in form 0409701 "Report on operations in foreign exchange and money markets," submitted by credit institutions to the Central Bank of Russia in accordance with Bank of Russia Regulation No. 6406-U dated April 10, 2023.

RUONIA represents the unsecured overnight lending rate in rubles, calculated by the Central Bank of Russia based on transactions of the top 35 banks. RUSFAR (Russian Secured Funding Average Rate), on the other hand, is the secured funding rate (repo with a central counterparty), calculated by the Moscow Exchange for different terms (ON, 1M, 3M, etc.).

The main difference between the two rates is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both, however, 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 of "Higher School of Management" at the Financial University under the Government of the Russian Federation.