Dollar spending through credit cards abroad falls 20% in June
Spending using credit cards has increased in the country
Bangladeshis reduced their dollar spending through credit cards abroad by 20% in June compared to May this year, according to a Bangladesh Bank report.
The central bank data showed that Bangladeshis spent the equivalent of Tk388 crore in June through credit cards in various countries on travelling, medical treatment, and buying products online.
In the previous month, the spending was the equivalent of Tk485 crore. As such, dollar expenditure has decreased by about Tk100 crore in a span of one month.
Currently, different banks have different rates for dollars for card payments. The average dollar rate is Tk110-111. According to that, last June, Bangladeshis spent about $35 million on credit cards.
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According to the central bank report, Bangladeshis spent the most in India at Tk61 crore, which is about 16% of the total spending. The remaining cross-border transactions took place in the USA at 14%, Saudi Arabia at 8%, Thailand at 8%, the UK at 7%, Singapore at 6%, Canada at 6%, the UAE at 6%, Malaysia at 5%, and the Netherlands.
Bankers said, before spending dollars on credit cards, customers have to first go to banks and endorse the dollars through their passports. Later, the dollar amount endorsed can be paid by credit card. According to central bank rules, a maximum of $12,000 per year can be spent against a Bangladeshi passport.
However, not only Bangladeshis but also foreigners have spent significant amounts of dollars on credit card purchases in Bangladesh. Last June, the transactions of credit cards used within Bangladesh by foreign nationals decreased to Tk196 crore in June from Tk210 crore in May. This transaction decreased by 7% compared to that of May.
The central bank said, in terms of amount, Bangladeshi credit card holders did almost two times more transactions outside the country than foreign credit card holders did within Bangladesh in June.
Credit card spending has increased across the country
According to the central bank report, domestic spending through credit cards increased by 1.87% in June compared to May. The amount was Tk2413 crore in June, compared to Tk2369 crore in May.
Analysing the expenditure behaviour of the credit cardholders, it was found that people mostly used credit cards in department stores. In June, about Tk1120 crore, or 46% of credit card transactions, took place in department stores, while about 13% took place in fund transfers. Besides, cardholders made their expenditures in retail outlet services, cash withdrawals, utilities, clothing, drugs and pharmacies, transportation, and business services.
