RUONIA Interbank Lending Rate Set at 14.83% on Friday

© ООО Региональные новости

RUONIA - the average market rate for overnight unsecured interbank lending in Russia, stood at 14.83% on Friday.

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

The RUSFAR ON RUB (overnight in rubles) rate was 14.66% on Friday.

RUSFAR ON CNY (overnight in yuan) was 0.99%.

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

RUONIA represents the rate for unsecured overnight ruble lending, calculated by the Central Bank of Russia based on transactions from 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 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 of 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.