Bangladeshi citizens are entitled to use a fixed amount of foreign currency each year for international travel, online purchases, or other approved foreign payments. This allocation, known as the Annual Travel Quota, is determined by Bangladesh Bank. It is an important regulation that every citizen should understand, especially when it comes to international financial transactions and foreign travel.
Recently, one of our readers shared his experience on our Facebook page:
“I collected a dual currency card from a bank, but I still can't make payments in foreign currency.”
This is a very common issue. We explained to him that simply having a dual currency debit, credit, or prepaid card isn't enough. To activate international transactions, the card must first be endorsed under the Annual Travel Quota.
Many first-time international users are unaware of this requirement. That’s why in this article, we will discuss why a dual currency card alone can't be used directly for international payments and how proper endorsement enables foreign transactions.
What is the Annual Travel Quota?
The Annual Travel Quota refers to the maximum amount of foreign currency (for example, US dollars) that a Bangladeshi passport holder is allowed to spend in a calendar year for personal travel, shopping, online subscriptions, or other valid purposes.
Currently, this limit is set at USD 12,000 (or equivalent in other currencies) per person per year.
Who is Eligible?
The quota applies only to Bangladeshi citizens holding personal passports. Regardless of how many banks or cards an individual uses, or how many trips they make in a year, they can't exceed the annual limit.
Where Can the Quota be used?
▣ International Travel: Airline tickets, hotel bookings, shopping, or dining abroad.
▣ Online Transactions: Payments on foreign websites such as Netflix, Canva, or ChatGPT, as well as online courses or product purchases.
▣ Card Transactions: Payments using internationally enabled debit or credit cards.
▣ Cash Endorsement: Authorized withdrawal of foreign currency (cash dollars) for travel purposes.
Why is Endorsement Important?
Whenever you purchase foreign currency or activate international transactions on your card, the amount must be endorsed in your passport. This is part of Bangladesh Bank’s foreign exchange policy and ensures accurate tracking of how much quota you have used.
Key Guidelines for Travel Quota
▣ The annual quota is valid from January 1 to December 31 each year.
▣ Even with multiple cards or banks, the total usage cannot exceed USD 12,000.
▣ The quota is available for adults (18+). Separate rules may apply for minors or children.
▣ It is strictly for personal use only, not for business or educational purposes (which have separate quotas).
What Happens If You Exceed the Quota?
Exceeding the annual quota is a violation of Bangladesh Bank’s foreign exchange regulations. This may result in account restrictions, card suspension, or even financial penalties.
▣ Practical Tips for Managing Your Quota
▣ Keep track of your travel and online expenses.
▣ Verify details with your bank’s Authorized Dealer (AD) branch if unsure.
▣ If traveling with family, take advantage of individual quotas for each eligible member—but ensure proper documentation and authorization.
▣ Always activate your card for online and international transactions before traveling.
So, The Annual Travel Quota system is a key part of Bangladesh Bank’s responsible foreign currency management framework. By staying within your limit, ensuring proper endorsement, and maintaining accurate records, you can enjoy international travel and online payments without any complications.