RUONIA Benchmark Stabilizes at 13.70% on Thursday

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RUONIA, the benchmark rate used as a basis for coupon payments, stabilized on Thursday at 13.70%.

RUONIA (Russian Overnight Index Average) is an indicative rate for overnight ruble-denominated interbank lending.

This rate is calculated as a weighted average of actual overnight lending transactions between the top 35 Russian banks.

RUSFAR ON RUB (overnight in rubles) stands at 13.88%.

RUSFAR ON CNY (overnight in yuan) is 3.5%.

It should be noted that RUONIA (Ruble Overnight Index Average) is the unsecured overnight lending rate in rubles, calculated by the 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 maturities (ON, 1M, 3M, etc.).

It is important to note that the RUSFAR rate 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 Bank of Russia.

The main difference: RUONIA is an unsecured rate, while RUSFAR is a secured rate, but both are key indicators of the cost of money in the market and are used for floating rates in bonds.

Overview provided by Alexey Grishchenko, Ph.D., Professor of the Department of Operational and Sectoral Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation.