IBD
Circular Letter No. 02 of 2014 |
April 14, 2014 |
The Presidents/Chief Executive Officers
All Islamic Banks and
All Conventional Banks having Islamic Banking Branches
Dear
Sir,
Shariah Compliant Solutions for Foreign Bill Discounting
Please refer to IBD Circular No. 2 of 2014 dated April 03, 2014 wherein necessary instructions on the subject were issued.
2. In this regard, clause 1(i) of the aforesaid circular is revised and replaced with the following clause with immediate effect:
“The Salam of foreign currency is not a preferred transaction, however if some IBIs are
interested in doing this transaction, the same shall be executed at the market rate of
the day. For the purpose of such transactions, the market rate shall mean the exchange
rate used to carry out normal ready transactions of at least USD 50,000 or more by the
IBI with its clients. Further, the IBI’s Shariah Advisor (Shariah Boards from 1st Oct. 2014)
shall ensure, through regular reviews that the exchange rate(s) applied in currency
Salam transactions of any day are/is not different in any material way from the
exchange rate(s) applied for ready transactions of USD 50,000 or more executed by the
IBI during that day.” |
3.
The other instructions contained in the said circular shall remain the same.
4.
Please acknowledge receipt.
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Yours truly,
Sd/-
(SALEEM ULLAH)
Director
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