8 Aug 2022 16:53

NBU to begin publishing derivative indicators of Ukrainian Overnight Index Average (UONIA) from Aug 10

MOSCOW. Aug 8 (Interfax) - Starting on August 10, 2022, the National Bank of Ukraine (NBU) will introduce calculation and publication of derivative indicators of the Ukrainian Overnight Index Average (UONIA), namely the cumulative index and the cumulative average UONIA rates, calculated for terms of one, three and six months.

"According to National Bank estimates, the calculation and publication of UONIA derivative indicators will contribute to the development of the market of floating rate and derivative instruments in Ukraine," Ukrainian media reported, citing a statement on the NBU website.

The regulator noted that the launch of such indicators will also expand the possibilities of UONIA as a prime rate in financial products and, accordingly, will support the pricing of contracts between banks and their clients on a sound basis.

The National Bank continues to look to the future and not only takes measures to address current challenges, but also lays the foundation for the active development of financial markets," Deputy NBU Governor Yuriy Heletiy said in a statement.

The National Bank added that the introduction of these calculations and their publication meets the best international practice, in particular, takes into account the approaches of the European Central Bank and the Bank of England.

The cumulative index and cumulative average UONIA rates will be published daily starting on August 10, 2022 on the NBU's official website of the National Bank in the "Financial markets" section ("Money Market: UONIA dynamics" widget).

The relevant NBU decision No. 390 "On Approval of Procedure for Calculation and Publication of derivative Indicators of Ukrainian Overnight Index Average (UONIA)" was made on August 4 and entered into force the same day, the statement said.

After the NBU raised its discount rate from 10% to 25% in early June and set the rate on deposit certificates at 23%, UONIA stands at 23% per annum, while before it was at 9% per annum since early March. Until February 24, the index value changed quite often, but within narrow limits, tied to the NBU working rates.