Bangladeshis' credit card spending abroad falls 10% in May
Bangladeshis travelling abroad spent approximately Tk456 crore through credit cards in May, marking a 9.94% decrease from the Tk506 crore spent in April
Credit card spending by Bangladeshis declined both domestically and internationally in May compared to the previous month.
Bangladeshis travelling abroad spent approximately Tk456 crore through credit cards in May, marking a 9.94% decrease from the Tk506 crore spent in April, according to data from the Bangladesh Bank.
Domestic credit card transactions experienced a slight decrease of 1.47%, totalling Tk2,742 crore in May compared to Tk2,783 crore in April.
According to a report by the central bank, credit cards issued by 56% of Bangladeshi banks were used in various countries for purchasing products from department stores, pharmacies, clothing outlets, and transportation in May.
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The expenditure on these purchases was around Tk258 crore.
An analysis of the credit card spending pattern reveals that about 77% of these transactions were made through use of VISA cards, 13% through MasterCard, and 8.47% through American Express.
The central bank also reported that Bangladeshis spent the highest amount of dollars through credit cards in India, followed by the USA, Thailand, the United Arab Emirates, Singapore, the United Kingdom, Saudi Arabia, Malaysia, and other countries.
A senior official at the central bank told The Business Standard that Bangladeshi citizens can spend up to $12,000 a year. They can use these dollars outside the country through cards and also have the option of carrying cash dollars.
"Many banks have now given special benefits to customers through the Resident Foreign Currency Deposit Account (RFCD). Through this, a customer can spend the dollars in their accounts on any type of payment abroad, even beyond the prescribed limit," the official said.
According to central bank data, at the end of April this year, the total number of credit cards issued by banks in the country was 24.69 lakh, compared to around 22 lakh a year ago.
The head of the card division at a bank told TBS that many customers use multiple cards, so the number of customers will be less compared to the number of cards.
He mentioned that consumers have increased dollar spending through credit cards as the dollar has appreciated in the open market since August 2022.
A person who sells dollars in the kerb market told TBS that the price of the dollar was Tk121.50 yesterday, although the maximum cost would be Tk119 if dollars were used on credit cards.
