With travel down, Dhaka’s money changers face worst slump in decades

On a late afternoon in Motijheel, the fading light slanted across DIT Extension Road, catching the rows of signboards that have hung there for years — fading paint, familiar fonts and the unmistakable blue-and-green glow of "AUTHORISED MONEY CHANGER". 

Once, the corridor hummed with footsteps and negotiations. These days, you mostly hear the hum of air conditioners and silence.

In recent months, Dhaka's licenced money changers have found themselves in one of the harshest slumps the industry has faced in recent times. With visa restrictions crippling outbound travel, a slowing economy eroding consumer confidence, and unlicenced operators mushrooming across the city, authorised exchange houses say business has collapsed to levels unseen in decades. 

"Almost 50% of our business has dropped, and outside Dhaka — in places like Khulna, Rajshahi and other district towns — many of our member institutions are losing nearly 90% of their business. The biggest reason is the suspension of Indian visas. Tourist travel has virtually disappeared. If we compare this period in 2023 — leaving aside 2024 entirely — businesses were doing two-thirds of what they normally would. Now even that has dropped." KM Maksudur Rahman, organising secretary, Money Changers' Association of Bangladesh

From Motijheel to Mirpur to Gulshan, traders describe empty counters, disappearing customers and a regulatory environment struggling to keep pace. 

The first shop I stepped into was Taslima Money Exchange, a name that predates even Bangladesh's private banking boom. Established in 1978, the business is now run by Mohammad Jalal Uddin, son of the original founder. 

He leaned back in his chair, hands folded, as if he had been waiting for someone to ask how things are going.

"Business has been quite bad for a year now," he said bluntly. "Very few people are travelling abroad. Many countries aren't issuing visas to Bangladeshis due to political uncertainty — Singapore, Malaysia, Thailand. Indian visas have been totally off. These were among our main destinations.

"December used to be different," he continued. "Every year, this was the month of family trips. School vacations, winter holidays, Christmas. Usually we would see peak demand. Now? You can see it yourself. We are lucky if we get one customer in an hour."

He gestured towards the empty counters. 

The exchange rate may have stabilised in recent months, but stability means little without customers. "The country's economic condition is just not favourable," Jalal said. "People don't have confidence. They don't have spare money."

Ironically, the period most money changers remember fondly is the one most Bangladeshis would like to forget: the 2022 dollar crisis. "It was turbulent, yes," Jalal said, "but for us, business was good. Sellers came to us. Buyers came to us. The fluctuation was a challenge, but the flow of transaction was strong."

He contrasted today's quiet with memories of the pre-digital 1990s. "Back then, business wasn't easy — no mobile phones, no internet, no Google Maps. Customers didn't always know where to find a money changer. Now it's just a search away. But what's the point of being easy to find when no one is travelling?"

Still, he holds onto cautious optimism. "After the election, things might improve. If political stability returns, visas will open, and business will pick up."

From Motijheel, I travelled across the city to Panthapath. Talukdar Money Exchange, another long-running business, now operates from Bashundhara Shopping Mall. 

"Business is not great," the teller said simply. "Foreign travel has reduced drastically. Everything eventually connects to visas and the economy. When people don't move, money doesn't move."

In Mirpur-10, the story repeated. At Mahmud Foreign Exchange Centre, its Managing Director Rasel Rana sat in a compact office behind a glass door filled with framed licences and stacks of paperwork.

"Business is moderate, nothing more," he said. "Visa troubles are still the biggest factor. Most countries are not giving visas easily. Since Covid, business has never returned to the way it was."

He pointed out a second challenge — one that contrasts with Jalal's recollection of 2022. "During the dollar crisis, we didn't do well. There was a shortage of physical dollars in the market. We struggled to source enough to meet even daily demand."

In the same neighbourhood, at Reliable Money Exchanger Pvt Ltd, two lone tellers sat with their elbows on the desk. One of them did not bother to dress it up.

"Business used to be good," he said. "Now it's just dry. Day after day, we wait. People aren't travelling. People aren't spending. What do we do?"

If there was anywhere the money exchange business could have stayed resilient, it would have been Gulshan, where corporate travellers, frequent fliers, and medical tourists should create a reliable stream of foot traffic. But even here, at Goodwill Money Exchange, the manager sighed at the state of things. Their signboard has hung over this intersection since 1997; longevity has rarely felt this fragile.

"Business is not good at all," he said. "The economy has hit the customers hard. Visa restrictions have made it worse. Earlier, India alone accounted for a huge number of our clients — medical, shopping, travel, everything. Now Indian visas are off, and that has hit us more than anyone realises."

He waved at the empty chairs. "People aren't spending because consumption is down. When the economy slows, foreign travel becomes the first thing people cut."

KM Maksudur Rahman, organising secretary of the Money Changers' Association of Bangladesh said, "Almost 50% of our business has dropped, and outside Dhaka — in places like Khulna, Rajshahi and other district towns — many of our member institutions are losing nearly 90% of their business. The biggest reason is the suspension of Indian visas. Tourist travel has virtually disappeared. If we compare this period in 2023 — leaving aside 2024 entirely — businesses were doing two-thirds of what they normally would. Now even that has dropped. 

"We hope that once an elected government is formed, the situation may begin to change. That is everyone's expectation — ours as well. But it is not realistic to think everything will improve the moment a new government takes office. They will need time. The issues we have with various countries on bilateral matters need to be addressed through discussion. Visa-related barriers and other constraints must be raised at the proper level. Only then, perhaps, will we see progress," he added. 

He started his business in 2006. 

"Back in the 2000s, this business did not face so many obstacles. What we are seeing now is that the number of unlicenced traders has increased significantly compared to licenced ones. We have appealed to the Bangladesh Bank repeatedly, but no remedy has come. Many are running operations with nothing more than a nameplate. Even in areas like Cantonment, several so-called 'money changers' are popping up. Some are even printing on their visiting cards that they have obtained money changer licences from the Ministry of Defence. But the Ministry of Defence does not issue such licences," Maksudur further said.

Recently, at a meeting organised by the NSI, the Money Changers Association informed them of the situation. However, any visible step is yet to be seen.

For a business that has weathered political transitions, recessions, currency reforms, and the rapid digitisation of financial services, this slowdown feels different. 

"Business has fluctuated since the '90s, but this dry spell is tough. We are all hoping that after the election, foreign relations will normalise and visa restrictions will ease. Only then will the flow come back," Maksudur said.

Across Dhaka, the money exchange business is a microscopic reflection of a larger national picture — one where economic uncertainty has crept into everyday decisions, where outbound travel is no longer routine but avoided until utterly needed, and where global perceptions of Bangladesh's political stability now directly shape neighbourhood-level livelihoods.