Domestic Forex Reserves Position Comfortable In Terms Of Import Cover Of More Than 18 Months

India's foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides cushion against unforeseen external shocks, stated the Union Minister of State for Finance Pankaj Chaudhary in a written reply to a question in Rajya Sabha yesterday. Weather the reserve funds are adequate to meet the international payment obligations, the Minister said that the ratio of forex reserves to total external debt stood at 101.2% and short-term external debt to forex reserves stood at 17.5% as at end-March 2021. The ratio of volatile capital flows (including cumulative portfolio inflows and outstanding short-term debt) to reserves was 67% at end-December 2020. India is comfortable in most of the external sector vulnerability indicators, he noted.

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