MIL-OSI Russia: Financial News: RUONIA Index and Urgent Version

Translation. Region: Russian Federal

Source: Central Bank of Russia (2) –

For financial products with a floating interest rate (e.g. loans, bonds), the Bank of Russia proposes to use the urgent version of RUONIA as an indicator.

Two products have been developed:

urgent version of RUONIA for terms of one, three and six months; the RUONIA accumulated value index, on the basis of which each market participant can calculate for themselves interest rates of any (non-standard) term.

Dynamics of the index and urgent version of RUONIA

The index and urgent version of RUONIA are calculated for each day based on the RUONIA interest rate (using the compound interest formula on business days for which RUONIA was calculated, using the simple interest formula on weekends and days for which RUONIA was not calculated) and are published on the website of the Bank of Russia on the days of RUONIA calculation after the publication of RUONIA.

RUONIA Interest Rate Methodology And Methodology for the formation and publication of the RUONIA index and the urgent version of RUONIA officially approved by the Bank of Russia.

The urgent version of RUONIA has an economic justification – the final yield is measured by the results of daily reinvestment during the “overnight” period. The issuer (borrower) pays the actual cost of money that has developed on the market over the past interest period.

The use of the urgent version of RUONIA allows smoothing the yield and avoiding shocks of the money (currency) market, as well as one-time changes in the key rate of the Bank of Russia. Thus, the urgent version of RUONIA relieves issuers and borrowers from the effects of volatility of short-term interest rates. At the same time, it acts as a nominal anchor – by managing the liquidity of the banking sector, the regulator stabilizes the value of RUONIA daily within the interest rate corridor, which ensures the predictability of its dynamics. Accordingly, the use of RUONIA in active and passive transactions allows minimizing the basis risk, since interest payments on claims and liabilities are closely correlated with each other.

In 2020, the Bank of Russia conducted an international audit confirming RUONIA’s compliance with the requirements of the International Organization of Securities Commissions.

In the Bank of Russia, control over compliance with international requirements is carried out by RUONIA Monitoring Committee. RUONIA is characterized by low operational risk.

User’s Guide for the RUONIA Index and Urgent Version.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.