Overseas credit card spending jumps 19% Y-o-Y in August
74.64% of overseas card transactions made using VISA cards
Bangladeshis spent over Tk443 crore abroad using credit cards in August this year – up more than 19% compared to the same month a year earlier, according to the latest Bangladesh Bank data.
Bank officials attribute the year-on-year rise in overseas credit card spending mainly to two factors: the stabilisation of the political situation and the easing of the dollar crisis.
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In August last year, the total amount spent abroad using cards stood at Tk372 crore. While the year-on-year spending rose in August this year, the month-on-month figure is still 7.5% less than the July figure of Tk479 crore.
"The political unrest following the power transition in August 2024 had temporarily reduced foreign travel by Bangladeshis," said the head of cards at a private commercial bank, speaking to TBS. "Moreover, after travel to India declined, cross-border card spending there also fell. This made the annual growth rate appear higher."
He added that the current increase is also supported by a more stable foreign currency situation. "Now, there is no dollar shortage. Banks have an ample supply of foreign currency, which was not the case in 2024. At that time, even obtaining cash or card-based dollars was difficult," he said.
A senior official at the central bank explained that Bangladeshi nationals are allowed to spend up to $12,000 per year abroad — either through credit cards or by carrying cash.
An analysis of the spending pattern shows that around 74.64% of overseas card transactions were made using VISA cards, 15.03% with MasterCard, and 10.26% via American Express.
Bangladeshis spent the highest amount of foreign currency through credit cards in the United States, followed by Thailand, the United Kingdom, Singapore, India, Malaysia, and Canada.
Meanwhile, the number of credit cards in circulation in Bangladesh has increased sharply – by about 64% over the past four years. As of December 2021, there were over 1.8 million cards in use, which rose to more than 3 million by August this year, central bank figures show.
