RUONIA Rate Stands at 13.57% on Wednesday

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On Wednesday, the RUONIA rate stands at 13.57%.

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

The RUONIA (Ruble Overnight Index Average) is the average rate applied by banks for overnight ruble-denominated loans to each other. It is calculated daily by averaging interbank lending rates among the top 35 Russian banks and is published on the official website of the Central Bank of Russia.

On Wednesday, the RUSFAR ON RUB (overnight, rubles) rate was 13.58%, while the RUSFAR ON CNY (overnight, yuan) rate was 1.8%.

The RUSFAR (Russian Secured Funding Average Rate) serves as a key benchmark:

- It reflects the level of interest 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 Central Bank of Russia.

It is worth noting that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. However, 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 Central Bank of Russia based on transactions among the top 35 banks. RUSFAR, on the other hand, is the secured funding rate (repo with a central counterparty) calculated by the Moscow Exchange for different terms (overnight, 1 month, 3 months, etc.).

This overview was presented by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management of the Higher School of Management at the Financial University under the Government of the Russian Federation.