RUONIA Rate Drops to 14.12% on Wednesday

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RUONIA rate dropped to 14.12% on Wednesday.

It is worth noting that the coupon payments of most floating-rate bonds are linked to the RUONIA rate.

The Russian Ruble Overnight Index Average (RUONIA) is the rate applied by banks when providing short-term overnight loans to each other for a period of one day.

RUONIA is calculated daily by averaging the interbank lending rates among the top 35 Russian banks and is published on the official website of the Central Bank of Russia.

On Wednesday, the RUSFAR ON RUB (overnight, rubles) rate stood at 14.14%.

RUSFAR ON CNY (overnight, yuan) was 0.5%.

RUSFAR serves as a key benchmark:

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

- It is formed based on the average values of repo transactions with the central counterparty,

- It is included in the list of financial indicators approved by the Central Bank of Russia.

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

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

This overview was presented 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.