The foreign exchange crisis in Bangladesh has negatively impacted credit card users, limiting their ability to make foreign purchases due to the sharp rise in the US dollar’s value against the taka. The depreciation of the local currency against the dollar has led to a reduction in the amount of USD that can be spent using credit cards. For example, the dollar’s exchange rate rose from Tk 85.20 in 2021 to Tk 110 recently. Credit cardholders, like those with Eastern Bank Ltd, have reported decreased access to dollars on their cards due to higher conversion rates. This situation has prompted requests to the central bank to raise credit card loan limits. Despite the challenges, domestic credit card use has increased amid rising inflation, offering some financial flexibility to consumers during economic crises. The higher USD rate offered by credit cards compared to the unofficial market rate has driven this growth.
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