RUONIA Rate Holds Steady at 13.90% on Friday

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RUONIA Rate Holds Steady at 13.90% on Friday

The indicator is calculated based on transactions of the top 35 Russian banks and is officially published by the Central Bank of Russia (CBR). It also serves as a benchmark for determining the coupon income on most exchange-traded bonds with floating rates.

The RUSFAR ON RUB (overnight in rubles) rate on Friday was 14.08%.

RUSFAR ON CNY (overnight in yuan) was 4%.

RUONIA is calculated based on the reporting data of major credit institutions using form 0409701 "Report on Operations in the Foreign Exchange and Money Markets," submitted by credit institutions to the Bank of Russia in accordance with the Instruction of the Bank of Russia 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 terms (ON, 1M, 3M, etc.).

The main difference between the rates is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both are key indicators of the cost of money in the market and are used for floating rates in bonds.

This overview was presented 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.