India's import cover falls marginally to 9.1 months at end of Dec 2018: RBI

Gold's share in the total foreign exchange reserves stood at about 5.59% as at end-March

India’s import cover fell marginally to 9.1 months at the end of December 2018, from 9.5 months at end-September 2018, as the country’s reserves fell about $5 billion in the period, the Reserve Bank of India (RBI) said in its half yearly report on foreign exchange reserves. 

In the same period, the ratio of short-term debt to the foreign exchange reserves, increased to 26.4 per cent from 26.1 per cent. This is mainly because the foreign exchange reserves fell from $400.52 billion to $395.59 billion between September 2018 and December 2018. 

The ratio of volatile capital flows, which is defined to include cumulative portfolio inflows and outstanding short-term debt, to the reserves increased from 88.4 per cent as at end-September, 2015, to 88.7 per cent as at end-December 2018, the RBI said.  

As at end-March, 2019, the Reserve Bank held 612.56 tonnes of gold, with 320.26 tonnes being held overseas in safe custody with the Bank of England and the Bank for International Settlements, while the remaining gold is held domestically. 

Gold’s share in the total foreign exchange reserves stood at about 5.59 per cent as at end-March, 2019.Data released on Friday showed India’s foreign exchange reserves stood at $420.06 billion, up $1.37 billion in a week to May 10.