Forex transactions thru cards post a rise

The volume of foreign currency transactions through cards increased in September mainly due to the continual devaluation of the local currency.

In September forex transactions through cards stood at Tk 689 crore, up from Tk 658 crore a month ago, as per the latest data from the Bangladesh Bank.

However, overall card transactions declined by 2.62 percent to Tk 39,943 crore in September, showed BB data.

Overall card transactions declined in September compared to the previous month, but foreign currency transactions increased slightly due to the continual devaluation of the taka, said Md Abu Bokar Siddique, head of card at Mutual Trust Bank.

He said that forex transactions through cards continue to rise, adding that it stood at Tk 219 crore in January, 2022.

Ahsan Ullah Chowdhury, head of digital financial services at Eastern Bank, told The Daily Star that foreign currency transactions through cards had been increasing since last year due to several factors, including differing foreign currency rates between card and cash transactions.

He said that even a few months ago there was a difference ranging from Tk 5-10 per dollar between foreign currency transactions made through cards and cash.

Another reason is that most banks have suspended the opening of student files, which has led people to conduct transactions through cards, Chowdhury added.

Another reason for the surge is that travelers prefers to make foreign currency transactions through cards and cash in the form of foreign currency such as US dollars is not always available on the market,.

Travelers also use their cards to pay for expenses such as airfare, travel costs, hotel bookings and shopping expenses, he added.