In June of this year, as per a report from the Bangladesh Bank, the spending of Bangladeshis using credit cards abroad decreased by 20% compared to May.
The central bank's data revealed that in June, Bangladeshis utilized credit cards for expenditures like travel, medical treatment, and online shopping in foreign countries, amounting to around Tk388 crore.
This marked a decline from the previous month's spending, which was approximately Tk485 crore. This represents a decrease of about Tk100 crore in just one month.
Different banks have varying exchange rates for converting Taka to dollars for credit card payments, with an average rate ranging between Tk110 and Tk111.
Based on this, it can be inferred that Bangladeshis spent around $35 million using credit cards in June. According to the report, the highest spending occurred in India at Tk61 crore, accounting for roughly 16% of the total spending.
Other significant cross-border transactions took place in the USA (14%), Saudi Arabia (8%), Thailand (8%), the UK (7%), Singapore (6%), Canada (6%), the UAE (6%), Malaysia (5%), and the Netherlands.
Banking experts explained that prior to using dollars on credit cards, customers are required to visit banks and authenticate the dollars using their passports.
Subsequently, the endorsed dollar amount can be paid using a credit card. As per the regulations of the central bank, a maximum of $12,000 per year can be spent using a Bangladeshi passport.
The central bank's report highlighted that Bangladeshi credit card holders conducted nearly twice the number of transactions outside the country compared to foreign credit card holders making transactions within Bangladesh in June.
A closer look at credit card holders' spending patterns revealed that they primarily used credit cards in department stores, accounting for around Tk1120 crore or 46% of all credit card transactions in June. Roughly 13% of the transactions were for fund transfers.
Credit card spending within the country witnessed a rise. According to the central bank report, domestic credit card spending increased by 1.87% in June in comparison to May, amounting to Tk2413 crore in June and Tk2369 crore in May.
It was revealed that cardholders mostly allocated their expenditures across various categories, including retail outlets, cash withdrawals, utilities, clothing, pharmaceuticals, transportation, and business services.