RUONIA Rate Drops to 14.22% on Monday, Benchmark for Floaters

© ООО Региональные новости

RUONIA rate, a benchmark for floating-rate bonds, dropped to 14.22% on Monday.

RUONIA (Ruble Overnight Index Average) reflects the average cost of overnight ruble loans in the interbank market and is calculated daily by the Bank of Russia based on transactions of the top 35 banks.

On Monday, the RUSFAR ON RUB (overnight, rubles) rate stood at 14.17%, while the RUSFAR ON CNY (overnight, yuan) rate was 0.18%.

RUSFAR (Russian Secured Funding Average Rate) serves as a key indicator, showing the level of rates in the Russian money market. It is formed based on the average values of repo transactions with the central counterparty and is included in the list of financial indicators approved by the Bank of Russia.

It is important to note that RUONIA is an unsecured overnight lending rate in rubles, calculated by the Bank of Russia based on transactions of the top 35 banks. RUSFAR, on the other hand, is a secured funding rate (repo with the central counterparty) calculated by the Moscow Exchange for different maturities (ON, 1M, 3M, etc.). The main difference is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both are key indicators of money market rates and are used for floating-rate bonds.

This overview was presented by Alexey Grishchenko, Ph.D., 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.