Foreign Exchange
Spot Deals
A spot deal is a contract to exchange one currency for another at the current market rate, typically for settlement within two working days.
Forwards
A forward is a contract to exchange currencies that involves buying or selling
a particular currency at an agreed date in the future, at a rate agreed up front. This rate is called the forward rate.
Option - Call and Put
A currency option is a contract where the customer pays a premium to NCB to obtain the right, but not the obligation, to buy (call) or sell (put) a specified amount of foreign currency at an agreed exchange rate, on or before a specified future date.
Banknote - USD and EURO
Banknote selling is where the customer buys physical foreign currency notes at the market price.
NCB expert staff provides competetive spot, forward and option qotes on virtually any currency.
Bullion Products and services
Our Bullion business in precious metals, including gold, includes the following:
Consignment
a consignment is a physical delivery of gold (Bullion Bars) to any client location in the Kingdom and GCC against a 100% cash reserve in addition to 5% margin .
Gold Loan
is a commercial loan whereby the underlying is physical gold or ounces (paper trading).
Cash Account
This refers to trading which is done on physical and non physical delivery over a cash account. The minimum transaction is set as follows:
- Gold 100 Troy ounces
- Silver 5,000 Troy ounces
- Platinum 100 Troy ounces
Money Market
Time Deposit
A deposit that is held with NCB for a pre-agreed period of time where NCB promices the customer to pay back his principle amount plus an agreed interest.
Interest Rate Swap
A hedging solution that is made between the treasury and customers who are exposed to fluctuating interest rate liabilities governed by a pre-defined cash flow in order to fix interest rates.
Shariah compliant Products
Khayrat/Murabaha - a capital secured product, approved by NCB’s Shariah
Board, it is also an alternative to conventional time deposit products. Khayrat AlAhli /Murabaha is based on Sharia principles, The customer owns a
commodity with definite specifications, type and quantity, and thereafter offers the commodity for sale to the bank at a deferred price, including
a specific profit margin.
Structured Product Solutions:
The heart of the Structured Products Desk is to provide a tailored solution to meet specific corporate needs that cannot be met from standardized financial instruments that are currently available in the market. Structured Products are used to manage risk exposure, by utilizing the current market trend, whether interest rate , foreign exchange or commodity related.