Foreign exchange transactions through cards have surged, reaching a record high of Tk 660 crore in May 2023, more than double the previous year’s figure. This increase can be attributed to the rising costs of foreign travel and medical treatments amidst inflation. The convenience of card-based foreign currency transactions, along with a shortage of dollars in banks and exchange houses, has fueled this trend. International payment networks like Visa and MasterCard are widely accepted and preferred by travelers for various expenses, including airfares, accommodations, and shopping. However, the surge in foreign exchange card transactions has put pressure on the country’s currency market, leading to a decline in foreign exchange reserves. In response, Bangladesh Bank has injected billions of dollars into the financial system to alleviate this pressure.
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