Forex transactions with cards hit record high in May

Business Report :
Forex transactions using cards reached an all-time high in May at Tk660 crore, more than double compared to the same month last year.
According to Bangladesh Bank data, the transactions stood at Tk358 crore in May 2022.

Card-based foreign currency transactions reached Tk6,349 crore in July-May of FY23, compared to Tk2,546 crore in the previous year.
Using cards for foreign currency transactions is convenient for travellers as it eliminates the need to carry large amounts of cash.
Besides, the shortage of dollars in the country’s banks and money exchanges has led to an increase in card usage by travellers to cover their expenses overseas.
As per Bangladesh Bank rules, each cardholder can spend up to $12,000 a year as their personal entitlement.

The country’s forex reserves came down to $30 billion on July 9 from a record $48.6 billion in August 2021.
Continued sales of foreign currency to settle import payment obligations reduced the country’s foreign reserves. The Bangladesh Bank injected more than $13.5 billion into the financial system in FY23 in order to facilitate banks’ import payment obligations.