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Bank & Finance - August 11, 2022

BB recommends using credit cards over cash abroad

Staff Correspondent: The Bangladesh Bank has recommended people to use credit cards instead of cash when travelling abroad in a move to save dollars.
Central bank spokesperson Serajul Islam said, “The number of expatriates leaving the country this year, is higher than those coming in, resulting in a decrease in dollar inflow. That is why the Bangladesh Bank encourages those who are going abroad for various purposes including medical, education and travel to use credit cards, instead of dollars in cash.”
Bangladesh is currently facing a dollar crisis due to high imports against 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 amid imports outpacing exports.
According to the report, LC settlement was $6.58 billion in July, down from $7.53 billion in the previous month of June. The LC settlements fell by 9.23% during the one-month period.
Besides, banks opened LCs worth $5.55 billion in July, a decrease from the $7.96 billion registered in June. As a result, the LC opening decreased by 30.20% in July.
The spokesperson said, “In FY22, the central bank sold $7.7 billion to banks. The country’s reserve dropped to $39.5 billion on Wednesday because of continuous dollar sales to meet import bills. Since July this fiscal year, dollar sales from the reserve have stood at $1.49 billion.”

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