The volume of foreign currency transactions made through cards declined to two years low in February due to unstable political and economic situation.
Bangladesh Bank data showed that the amount of card-based foreign currency transactions decreased to Tk 604.19 crore in February from Tk 681 crore in January.
The figure in February was the lowest after February 2023 when it was Tk 557 crore.
Forex transaction through cards usually declines in January and February as travellers usually travel in December.
In December 2024, Bangladeshi nationals spent Tk 834 crore abroad on goods and services using credit and debit cards, the highest monthly expenditure recorded that year. In comparison, the figure stood at Tk 929 crore in December 2023.
With educational institutions in Bangladesh closed during this period, many people travel abroad with their children, contributing to the rise in foreign currency transactions via cards, bankers said.
Bankers noted that the foreign exchange transactions by cards depended on availability of dollars and the number of travellers going abroad.
Besides, the transaction may also decline in February due to the ongoing complications in obtaining visas for India.
Bankers said that the prices of foreign currency transactions in local currency showed higher due to the devaluation of the local currency.
The dollar rate has continuously rising. It has surged to Tk 122 steadily from Tk 85.80 in December 2021 to Tk 104 in December 2022.
The banks usually adjust the rates in foreign currency accounts, potentially resulting in travelers obtaining available foreign currencies at higher prices.
The card-based foreign currency transactions started rebounding after July 2021 with relaxation of travel restrictions and the amount crossed Tk 250 crore in December 2021. In July 2022, it was Tk 441 crore.
The monthly average transaction volume through cards is now over Tk 600 crore for a year.
Foreign currency transactions using cards have experienced significant growth in the current financial year, as it has become much easier for travellers to obtain foreign currency through cards from banks, bankers said.
Transactions like shopping bills and utility payments can now be made with ease, and transferring money between banks takes just a click鈥攔educing the need to carry cash and making daily life more convenient.
In addition, more and more people have found it safe and easy to use cards, they said.