RUONIA Rate Drops to 15.40% on Wednesday

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RUONIA rate dropped to 15.40% on Wednesday.

It is important to note that the coupon payments of the majority of floating-rate bonds are linked to the RUONIA rate.

The RUONIA (Ruble Overnight Index Average) is the average rate applied by banks for overnight (one-day) interbank lending in Russian rubles.

This rate is calculated daily by averaging the rates of short-term interbank lending transactions among the top 35 Russian banks and is published on the official website of the Central Bank of Russia.

On Wednesday, the RUSFAR ON RUB (overnight, rubles) rate stood at 15.26%, while the RUSFAR ON CNY (overnight, yuan) rate was 6%.

The RUSFAR (Russian Secured Funding Average 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 Central Bank of Russia.

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

RUONIA is the unsecured overnight lending rate in rubles, calculated by the Central Bank of Russia based on transactions among the top 35 banks, while RUSFAR is the secured funding rate (repo with a central counterparty), calculated by the Moscow Exchange for different tenors (ON, 1M, 3M, etc.).

This overview was prepared by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management of the Higher School of Management at the Financial University under the Government of the Russian Federation.