RUONIA Benchmark Rate Stabilizes at 15.25% on Monday

© ООО Региональные новости

RUONIA rate, a benchmark for floating-rate bonds, dropped to 15.25% on Monday.

RUONIA (Ruble Overnight Index Average) reflects the average cost of overnight ruble loans in the interbank market and is calculated daily by the Bank of Russia based on transactions from the top 35 banks.

Meanwhile, the RUSFAR ON RUB (overnight, rubles) rate stood at 15.19% on Monday, while the RUSFAR ON CNY (overnight, yuan) rate was 8.49%.

RUSFAR (Russian Secured Funding Average Rate) serves as a key indicator, reflecting the level of rates in the Russian money market. It is calculated based on the average values of repo transactions with the central counterparty and is included in the list of financial indicators approved by the Bank of Russia.

It is important to note that RUONIA is an unsecured overnight lending rate in rubles, calculated by the Bank of Russia based on transactions from the top 35 banks. RUSFAR, on the other hand, is a secured funding rate (repo with the central counterparty), calculated by the Moscow Exchange for different maturities (ON, 1M, 3M, etc.). The main difference is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. 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, Ph.D., 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.