| Money Market Instruments |
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Acceptance Bills-i (AB-i)
- AB-i is a bill of exchange which is either:
- drawn by the Bank and accepted by the importer/purchaser
- drawn by the exporter/seller and accepted by the Bank
- The bill constitutes a debt owed to the Bank thus eligible for trading in the secondary market
- The underlying Shariah transaction for trading in the secondary market is known as Bai´ Dayn (debt trading)
- Price of AB-i is based on the discounting formula
- The discount rate of AB-i shall reflect the current market standing
- Trading of AB-i is subjected to the availability of the bill at Bank Islam
- Islamic equivalent of conventional Bankers Acceptance
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