At ABL, our Treasury Sales team is offering following FX products to our clients.
These transactions refer to Sale/Purchase of one currency against another with settlement on the same day. Sale desk provides rates for Ready transaction of US $5,000/- and above and equivalent third currencies as well. Rates on the rate sheet are applicable for amounts less than US $5,000/- or equivalent 3rd currency.
Forward Sale/Purchase (Import/Export
This refers to sale/purchase of one currency against another with settlement at a future date. Future date and price are agreed at the time the deal is executed. Customers can book their FX exposure in the forward to hedge themselves against volatility in the currency of exposure. The forward can be booked as per the rules prescribed by SBP. All these transactions are confirmed with the Sales Desk over recorded telephone lines.
Foreign Bill Purchase (FBP
FBP is a solution provided to the exporters whereby they can generate PKR funds against their export bills. While discounting, the bank buys the bill in forward value (bill of exchange or promissory note) i.e. before it is due. The forward value of the bill is discounted and the discount rate used is the PKR interest rate and represents the interest charged to the customer for providing him/her with the funds against the security of the export bill. All these transactions are confirmed with the Sales Desk over recorded telephone lines.
Foreign Bill Discounted (FBD
Conceptually FBD is similar to FBP, with the only difference being the underlying currency of the credit facility, which in case of FBD is the foreign currency. Client’s foreign currency export bill is discounted using the discount rate which is LIBOR + Spread. Discounted foreign currency value of the export bill is converted into PKR amount using the ready rate and the PKR amount is disbursed to the customer. All these transactions are confirmed with the Sales Desk over recorded telephone lines.