RUONIA Hovers at 14.22% on Friday

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RUONIA Rate Holds Steady at 14.22% on Friday

The RUONIA (Russian Unsecured 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 14.34%.

RUSFAR ON CNY (overnight in yuan) was 0.72%.

RUONIA is calculated based on the reporting of major credit institutions under form 0409701 "Report on Operations in the Foreign Exchange and Money Markets", submitted by credit institutions to the 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 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 tenors (ON, 1M, 3M, etc.).

The key difference between the two rates is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both, however, are critical indicators of money market costs 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.