RUONIA Rate Holds Steady at 14.23% on Friday

© ООО Региональные новости

RUONIA Rate Remains at 14.23% on Friday

The RUONIA (Russian Overnight Index Average) rate, calculated based on transactions of the top 35 Russian banks and officially published by the Central Bank of Russia, is also used as a benchmark for determining the coupon income on most exchange-traded bonds with floating rates.

On Friday, the RUSFAR ON RUB (overnight in rubles) rate stood at 14.16%.

RUSFAR ON CNY (overnight in yuan) was 0.16%.

RUONIA is calculated based on the reporting of major credit institutions using form 0409701, "Report on Operations in the Foreign Exchange and Money Markets," submitted by credit institutions to the Central Bank of Russia in accordance with Bank of Russia Instruction No. 6406-U dated April 10, 2023.

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

The main difference between the 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 Alexei 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.