Since the beginning of 2022, the foreign currency transactions through cards are gradually increasing. In the month of October alone, card transactions increased by 3.24 percent in one month. According to the latest data of Bangladesh Bank, an unprecedented transaction of Tk. 605 crore was done through cards in October alone. A month before this, taka 586 crore were transacted through cards. That is, the transaction has increased by Tk. 19 crore in one month.
However, despite the increase in foreign exchange transactions, the number of cards decreased between August and October. As of August this year, there were about 33.3 million debit and credit cards. Of this, about 28.3 million are debit cards and the rest are credit cards. In addition, the number of debit and credit cards in October stood at 32 million.
According to the Bangladesh Bank data, local transactions through cards also increased by 45% over the same period last year. In the first ten months of this year (January-October), foreign currency transactions using cards in the country increased by 172%. From January to October, foreign exchange transactions through cards increased by Tk. 3,908 crore.
In contrast, foreign exchange transactions through cards were Tk. 1,434 crore in the first ten months of last year. That is, due to cash dollar crisis, such transactions increased by Tk. 2,471 crore in January-October of this year.
Bank officials said that the price of the US dollar in the open market is now Tk. 112. Where getting foreign currency through card costs Tk. 107. Because of this, people have chosen digital medium for transactions.
Sources of the central bank have also mentioned unstable supply and demand of foreign currency behind the increase in foreign currency transactions through cards.
Sources say the country’s foreign exchange market has been volatile for more than five months this year. Whereas the central bank has struggled to stabilize the dollar rate by selling greenbacks to banks. This is contributing to the depletion of foreign exchange reserves and weakening the Taka.
Banks sell dollars to customers in cash and cards. Besides, foreign exchange transactions through credit cards have been allowed in the country for a long time.
Allowing customers to issue international debit cards against their accounts from June 2020 after the onset of Covid-19. Dual currency cards are allowed for hotel bookings abroad and purchases of a certain amount from home.
According to central bank guidelines, the card can spend a maximum of $12,000 a year. Cardholders using this facility spent Tk. 37,530 crore on local transactions in October.
According to Central Bank data, people spent Tk. 335,000 crore through debit and credit cards in January-October this year. Which was 2 lakh 31 thousand crore last year.
