The regulator recommended that Russian banks switch to the emergency version of RUONIA (Overnight Ruble Index Average) from September 1, 2022, to protect borrowers from a sharp change in exchange rates (volatility) when issuing variable rate loans. Information about this press service of the Central Bank of the Russian Federation published on your site.
As stated by the Bank of Russia, RUONIA is the weighted interest rate for overnight interbank ruble loans and reflects the estimated cost of overnight (for one business day) unsecured borrowing.
“When lending with floating interest rates and developing other financial products, banks are advised to use the emergency version of RUONIA as a benchmark with 1, 3 or 6 month maturities,” the message says.
At the beginning of July 29, the editor declaration Preparations for the cancellation of trade with the dollar and euro are related to media coverage of the ever-changing sanctions restrictions and the regulator creating different scenarios with market participants.
Before this issue of Forbes WroteHe reported that the Bank of Russia is discussing with participants in the foreign exchange market how to determine the exchange rate of the ruble against the dollar and the euro in the event of the cessation of foreign exchange trading.