MONIA index

MONIA: Mongolia overnight index average

Since 2017, the Bank of Mongolia has regularly announced to the public the overnight index average (MONIA) for uncollateralized overnight trading between domestic banks. Uncollateralized overnight trading is an uncollateralized interbank loan offered by banks to efficiently manage their excess reserves, and repayment is made during the first transaction of the next business day.

The interbank MNT market is currently the largest market in Mongolia with the highest trading volume, and the public announcement of the overnight interest index average of the market will improve information equality in the money market, increase transparency, and also form the base of the MNT currency yield curve.

The Interbank Overnight Average Index (MONIA) is used for the following, as well as other purposes. This includes:

  1. The interest rate basis for any agreement made in the money market;
  2. Base interest rate for establishing interest rate swaps, currency swaps, currency forward contracts and other financial derivative contracts,
  3. Provide basic information for making savings, credit, and investment decisions;