RUONIA Rate Holds Steady at 13.96% on Friday

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RUONIA Rate Stays at 13.96% 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 floating-rate bonds.

On Friday, the RUSFAR ON RUB (overnight ruble rate) stood at 13.84%.

RUSFAR ON CNY (overnight yuan rate) was 0.7%.

RUONIA is calculated based on the reporting data of major credit institutions submitted to the Central Bank of Russia in the form 0409701 "Report on Operations in the Currency and Money Markets" in accordance with the Instruction of the Bank of Russia No. 6406-U dated April 10, 2023.

RUONIA is the unsecured overnight ruble lending rate, calculated by the Central 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.).

The main difference between the 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 presented 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.