Bangladesh Allows $18,000 Annual Spending on Foreign Travel
Bangladesh Bank has increased the annual foreign exchange limit for Bangladeshi citizens traveling abroad from $12,000 to $18,000. Out of this, a maximum of $5,000 can be spent in cash each time and the remaining amount can be spent on cards. This decision has been taken considering the increasing demand for foreign exchange related to travel and the changing needs of international travel. Yesterday, Sunday, the Foreign Exchange Policy Department of Bangladesh Bank issued a notification in this regard and sent it to the authorized dealer (AD) banks. From now on, they will follow this instruction.
According to the notification, authorized dealer (AD) banks will be able to issue a maximum of $18,000 or its equivalent in foreign currency to an adult Bangladeshi citizen for foreign travel in any calendar year. Earlier, this limit was $12,000. Bangladesh Bank said that this decision has been taken considering the increasing cost of international travel, the actual foreign currency demand of travelers for various needs including medical treatment, education, business and tourism abroad. The main objective of this initiative is to make it easier for travelers to meet their necessary expenses in the changing global reality.
However, the previous rules will remain in force for those under 12 years of age. They will be subject to 50 percent of the limit set for adults. That is, the maximum annual foreign exchange withdrawal limit for minors will be US$ 9,000 or its equivalent in foreign currency. In addition, the limit on carrying US dollars in cash has been maintained as per the previous rules. A traveler can withdraw a maximum of US$ 5,000 in cash (US dollar notes) out of his quota. The remaining amount must be used through international debit, credit or prepaid travel cards or other means approved by Bangladesh Bank. Bangladesh Bank also said that other previously issued instructions regarding foreign exchange withdrawal for foreign travel will remain unchanged. The new circular has only increased the annual travel quota; all other rules and regulations will remain in effect as before. Banks have been instructed to inform the concerned officers, employees and customers about the contents of the circular, so that foreign travelers can know about the new facility and can easily receive the required foreign currency.
According to those involved in the banking sector, this new decision is a timely decision. It will have a positive impact on Bangladeshi citizens going abroad for medical treatment, higher education, business trips and tourism. Especially in countries where the cost of stay is relatively high, travelers will get more benefits than before in using the necessary foreign currency. According to sources, recently, in an exchange of views with the editors and business editors of the country’s top media outlets, they demanded an increase in the limit on the use of foreign currency during foreign travel. In that meeting, Governor Mostakur Rahman promised to increase this limit. In this context, the concerned people mentioned that Bangladesh Bank has taken a timely decision.
The circular said that this decision has been implemented to meet the actual travel-related foreign exchange needs and considering the changing needs of international travel. As a result of the new guidelines, the scope of using foreign currency for Bangladeshi citizens traveling abroad has been further expanded, which, according to those concerned, will make international travel easier and more practical. At the same time, experts have mentioned that hundi or money laundering to cover additional travel expenses will be reduced.
The new limit will be applicable from January 1 to December 31 of each calendar year. Bangladesh Bank hopes that the increase in the travel quota limit will make it easier to meet the foreign exchange needs for foreign travel. This will provide additional benefits for tourism, visiting relatives and other approved foreign travel.
