Forex card transactions soar to Tk 834cr in December
Staff Reporter :
Foreign currency transactions through cards soared to Tk 834 crore in December 2024, the highest recorded for the year, driven by increased outbound travel by Bangladeshis during the holiday season.
According to Bangladesh Bank data, foreign currency transactions via cards amounted to Tk 672.34 crore in November, indicating a 24 per cent rise in December compared to the previous month.
Similarly, domestic card transactions also saw significant growth, reaching Tk 44,220 crore in December-the highest in the past six months. In October 2024, the volume of foreign currency transactions made through cards stood at Tk 727 crore.
Bankers attributed the rise in foreign currency transactions in December to increased accessibility and convenience for travellers. Over the years, banks have made it easier for customers to use foreign currency via debit and credit cards, reducing the need to carry large amounts of cash.
Travellers primarily use their cards for payments related to airfare, travel expenses, hotel bookings, and shopping, among other expenditures.
Under Bangladesh Bank regulations, each cardholder is entitled to spend up to $12,000 annually on foreign transactions. However, the spending in December 2024 remained lower than the Tk 929 crore recorded in December 2023, according to the Bangladesh Bank’s statistics department.
Credit card usage saw a significant decline in July and August 2023 due to inflationary pressures and disruptions caused by nationwide unrest, which impacted both consumer spending and the operational capacity of banks.
Recent increases in remittance inflows and export earnings have helped strengthen banks’ foreign currency reserves, providing some support for card-based transactions.
However, despite a moderate increase in transaction volumes, the total expenditure in local currency has risen sharply due to the continued depreciation of the taka against the US dollar.
The exchange rate has steadily increased in recent years, reaching Tk 122 per dollar in December 2024, compared to Tk 110 in December 2023, Tk 104 in December 2022, and Tk 85.80 in December 2021.
This depreciation has made foreign currency transactions more expensive in terms of taka, affecting both travellers and businesses reliant on international payments.