India's reserves adequacy improved to 18.6 months in December 2020

As at end-March 2021, RBI held 695.31 tonnes of gold--403.01 tonnes overseas with the Bank of England and Bank of International Settlements, and 292.30 tonnes domestically

India’s import cover improved to 18.6 months at the end of December 2020, from 17.1 months at end-September 2020, the central bank said in its half yearly report on foreign exchange management.

The ratio of short-term debt to reserves, which was 18.9 per cent at end-September 2020, declined to 17.7 per cent at end-December 2020. The ratio of volatile capital flows (including cumulative portfolio inflows and outstanding short-term debt) to reserves declined from 68.0 per cent to 67.0 per cent in the same period, the central bank said in its half yearly report on management of foreign exchange reserves.

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