RUONIA Rate Holds Steady at 14.25% on Friday

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RUONIA Rate Remains at 14.25% 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, serves 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 14.75%.

RUSFAR ON CNY (overnight in yuan) was 3.4%.

RUONIA is calculated using the data from the financial reports of major credit institutions submitted to the Central Bank of Russia in accordance with Regulation 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. 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 (ON, 1M, 3M, etc.).

The main difference between the two rates is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both rates 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.