BD nationals spend 18.87pc more in Dec than in Nov 2023

Credit-card transactions by Bangladeshi nationals outside the country rose 18.87 per cent in December 2023 from the previous month (November), apparently as getting cash dollars from banks has become difficult for the travellers.
The spending abroad through credit cards increased equivalent to Tk 5.79 billion in December from Tk 4.87 billion in November 2023, according to latest Bangladesh Bank (BB) data.
However, the transactions were more than three times higher than the foreign nationals travelled here in the month under review - their spending declined 5.02 per cent to Tk 1.84 billion in December 2023 from Tk 1.93 billion in November 2023.
The overall credit card transactions within the country increased by 5.29 per cent in December 2023 compared to that of the previous month, amounting to Tk 26.74 billion in December 2023 from Tk 25.39 billion in November 2023.
The BB collects the data on credit card transactions from 43 scheduled banks and one nonbank financial institution in the country.
In November last year, the transactions at departmental stores totalled Tk 12.58 billion, rising to Tk 13.09 billion in December, accounting for 49.57 per cent and 48.97 per cent of the total transactions, respectively.
Retail outlet services increased slightly from Tk 3.33 billion to Tk 3.41 billion (13.12 per cent and 12.78 per cent of total transactions). Utilities transactions rose from Tk 2.30 billion to Tk 2.44 billion.
Cash withdrawals remained stable at Tk 2.07 billion in November and Tk 2.18 billion in December (8.18 per cent of total transactions for both months).
Clothing transactions increased from Tk 1.20 billion to Tk 1.65 billion while drug and pharmacy transactions increased marginally from Tk 1.30 billion to Tk 1.31 billion.
Credit card transactions in December were predominantly made using VISA (70.42 per cent), followed by Mastercard (18.35 per cent), and AMEX (10.95 per cent). The remaining transactions were made using other card types.
In December 2023, the credit card holders' spending abroad matched their domestic patterns.
The majority of transactions occurred in departmental stores (28.25 per cent), followed by retail outlet services (15.66 per cent), drug and pharmacies (12.90 per cent), cash withdrawal (9.69 per cent), clothing (8.59 per cent), transportation (6.95 per cent), and other categories (24.91 per cent).
In cross-border transactions, India led with nearly 19.95 per cent, followed by the USA (12.63 per cent), UAE (10.25 per cent), Thailand (10.08 per cent), Singapore (6.91 per cent), Saudi Arabia (6.38 per cent), UK (5.88 per cent), Canada (5.53 per cent), Malaysia (3.72 per cent), Australia (2.62 per cent), Netherlands (2.23 per cent), Ireland (2.14 per cent), and other countries (11.66 per cent).
Syed Mahbubur Rahman, Managing Director & CEO of Mutual Trust Bank PLC, noted that the present dollar market situation has made it more convenient and less costly for the people to use credit cards.
"When a Bangladeshi cardholder uses a card outside the country, they can transact it at a price lower than the rate may have to be paid for buying US dollar from the market," he said.
"Moreover, the banks have also become restrictive in selling cash dollars. So the credit card transactions have surged."
Regarding the fall in transactions by foreign nationals in Bangladesh, Mr. Rahman suggested that a lesser number of foreign nationals may have travelled for business purposes or foreign direct investment (FDI) in the month.
"Another reason might be that the foreigners possibly deferred their travel to Bangladesh ahead of the last general election. However, this situation may improve in the coming days," he added.

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