BB recommends using credit cards rather than cash abroad

The Bangladesh Bank has advised people to use credit cards instead of cash when traveling abroad in a bid to save money.

Central bank spokesman Serajul Islam said: “The number of expatriates leaving the country this year is higher than those arriving, resulting in lower dollar inflows. This is why the Bangladesh Bank encourages those who go abroad for various purposes including medical. , education and travel to use credit cards, instead of cash dollars.”

Bangladesh is currently facing a dollar crisis due to high imports compared to exports. The government has taken various measures to curb imports.

Letter of credit (LC) settlements fell by $1.17 billion in the past month as the government tried to ease pressure on foreign exchange reserves as imports exceeded exports.

According to the report, LC’s settlement was $6.58 billion in July, up from $7.53 billion the previous June. LC settlements fell 9.23% during the one-month period.

Additionally, banks opened LCs worth $5.55 billion in July, down from $7.96 billion in June. As a result, the LC open decreased by 30.20% in July.

The spokesperson said: “In FY22, the central bank sold $7.7 billion to banks. The country’s reserve fell to $39.5 billion on Wednesday due to continued selling in dollars to meet import bills. Since July of this fiscal year, dollar sales from the reserve have been $1.49 billion.”

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