RUONIA Rate Stands at 13.77% on Wednesday

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RUONIA rate stands at 13.77% on Wednesday.

It is worth noting 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 providing short-term loans to each other for a one-day period ("overnight").

The rate is calculated daily by averaging the operations of interbank lending 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 13.68%, while the RUSFAR ON CNY (overnight, yuan) rate was 0.8%.

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

- Reflects the level of rates in the Russian money market,

- Is based on the average values of repo transactions with the central counterparty,

- 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 is the unsecured overnight lending rate in rubles, calculated by the Central Bank of Russia based on transactions among the top 35 banks, whereas RUSFAR is the secured funding rate (repo with the central counterparty), calculated by the Moscow Exchange for different tenors (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.