RUONIA Rate Stands at 13.86% on Wednesday

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On Wednesday, the RUONIA rate stands at 13.86%.

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

The RUONIA (Ruble Overnight Index Average) is the average rate applied by banks when lending to each other for a one-day period ("overnight").

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

On Wednesday, the RUSFAR ON RUB (overnight, rubles) rate was 13.83%, while the RUSFAR ON CNY (overnight, yuan) rate was 1.5%.

RUSFAR serves as a key benchmark:

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

- It is 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.

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

RUONIA is the rate for unsecured overnight ruble lending, calculated by the Bank of Russia based on transactions of 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, Ph.D., 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.