RUONIA Rates Stabilize Amid Central Bank Interventions

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RUONIA benchmark stabilized at 15.35% on Thursday.

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

This rate is calculated as a weighted average of actual overnight lending transactions between the top 35 Russian banks.

RUSFAR ON RUB (overnight in rubles) was 15.02%.

RUSFAR ON CNY (overnight in yuan) was 8.5%.

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

RUSFAR serves as a key benchmark:

- It reflects the level of rates in the Russian money market,

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

The overview was presented by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.