RUONIA Rate Stands at 14.09% on Wednesday

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RUONIA rate stands at 14.09% on Wednesday.

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

RUONIA (Ruble Overnight Index Average) is the average rate for ruble-denominated overnight loans, used by banks when lending to each other for a one-day period ("overnight").

The rate is calculated daily by averaging the interbank lending operations 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 14.21%, while the RUSFAR ON CNY (overnight, yuan) rate was 0.76%.

RUSFAR 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 Central 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 (Ruble Overnight Index Average) is the rate for unsecured overnight ruble lending, 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 central counterparty), calculated by Moscow Exchange for different terms (ON, 1M, 3M, etc.).

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.