PBZ BANK LTD
USD Buy: 2330.000 Sell: 2372.000 USD 5,10 & 20 Buy: 2200.000 Sell: 2372.000 USD 1 Buy: 2000.000 Sell: 2372.000 GBP Buy: 2820.000 Sell: 2949.000 GBP/USD Buy: 1.204 Sell: 1.260 EUR Buy: 2475.000 Sell: 2591.000 EUR/USD Buy: 1.057 Sell: 1.106 UGA Buy: 0.450 Sell: 0.790 KSH Buy: 16.500 Sell: 23.500 ZAR Buy: 100.000 Sell: 150.000 OMR Buy: 5980.000 Sell: 6120.000 AED Buy: 610.000 Sell: 655.000 SAR Buy: 560.000 Sell: 650.000
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Bai Salam

Bai Salam is a form of forward contract in which the price for an asset is paid upfront at the time of the contract for an asset or commodity to be delivered later. It a sale where the Asset/Commodity is delivered on a deferred basis in exchange for the price being paid immediately. It differs from the idea of Murabahah where the price is paid on deferred basis but asset is delivered immediately.

Because the Salam contract deals with the delivery of an asset which is not in existence, the following Shariah highlights must be strictly adhered to in order to ensure that the right of all parties are protected.

Rules and features of Salaam include:

• Asset delivery is differed but payment is made up front, i.e. the seller undertakes to supply a specific asset at a future date in exchange for full on the spot payment (in advance) at the start of the contract.
• The object of the sale (asset) becomes a debt at the point of contract, thus the payment cannot be delayed.
• The capital of Salam can be money, services or rights (usufruct).
• The object of the exchange must be fungible i.e. can be specified according to weight, size, volume, colour, quantity, quality or grade. It can also be a well-defined service. The object of exchange cannot be paper money as it is not a commodity/asset.
• Salam cannot be valid for assets with changing values from different assessments. Values must be fixed.
• The place and time of the delivery must be specified. Delivery in instalments is allowed, if agreed by all parties. Early delivery is allowed if all parties agreed and no parties are disadvantaged.
• Salam must be concluded with actual physical delivery.
• The seller of the asset need not be the manufacturer or producer of the asset. The seller may be an agent to deliver the asset.
• Salam is conclusive and binding upon the full payment for the sale at the start of the contract. The terms can only be reviewed and changed with consent of both parties.
• Before delivery of the asset, the risks on the asset lie with the seller and upon delivery, the risks are transferred to the buyer.
• Upon delivery of the stipulated asset, the buyer is obligated to take possession of the asset if the asset delivered is in accordance with the agreed specifications. For such delivery, the seller’s liability to the contract is absolved.
• If the assets to be delivered consist of different assets at different values or description, the assets must be detailed as far as possible to avoid dispute.

The buyer can enter into a similar contract with a third party to sell the goods in a so called Parallel Salam. This parallel contract is independent from the first Salam contract but it is always used along to give the bank assurance that the goods purchased will be sold instantly upon delivery by the customer.

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Parallel Salam

A parallel Salam is practiced where a bank is not involved in agricultural endeavours. Therefore, to take delivery of the commodity or goods from a customer, the Bank goes into a parallel Salam with a third party buyer of commodity or goods to sell the same on the expected delivery date.

Required documents for Bai Salam

The following are the documents integral to Bai Salam contract:
• All KYC documents as per the bank’s Operations Manual and the bank’s Lending Policy
• Seller’s Offer Letter to sell to the Bank
• Salam sale contract detailing all the requirements of salam
• Wakalah Agreement (with third party) authorizing it to take delivery on behalf of the Bank on due date
• Security documents as listed in the Bank’s Lending Policy for commercial lending or employer’s guarantee for salaried financing
• Declaration of Taking Delivery of goods
• Parallel Salam agreement between the bank and the buyer

PBZ BANK LTD