RUONIA Benchmark Rate Drops to 14.81% on Monday

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RUONIA, a benchmark rate for floating-rate bonds, dropped to 14.81% on Monday.

RUONIA reflects the average cost of overnight ruble loans in the interbank market and is calculated daily by the Central Bank of Russia based on transactions of the top 35 banks.

Meanwhile, the RUSFAR ON RUB (overnight, rubles) rate stood at 14.6% on Monday, while the RUSFAR ON CNY (overnight, yuan) rate was 1%.

RUSFAR serves as a key indicator of interest rates in the Russian money market, based on the average values of repo transactions with the central counterparty and included in the list of financial indicators approved by the Central Bank of Russia.

It is important to note that RUONIA (Ruble Overnight Index Average) is 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 (overnight, 1 month, 3 months, 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 prepared 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.