India's import cover improved to 10.9 months in March

India’s import cover improved to 10.9 months at the end of March 2016, from 9.8 months at end-September 2015, as the country’s reserves improved about $10 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, declined to 23.1 per cent from 24.2 per cent. This is mainly

because the foreign exchange reserves improved from $350.3 billion to $360.18 billion in between September 2015 and March 2016.The ratio of volatile capital flows, which is defined to include cumulative portfolio inflows and outstanding short-term debt, to the reserves declined from 89.9 per cent as at end-September 2015 to 87.1 per cent as at end-March 2016, the RBI said.The Reserve Bank holds 557.77 tonnes of gold. Of which, 265.49 tonnes are held overseas with the Bank of England and the Bank for International Settlements.Gold’s share in the total foreign exchange reserves stood at about 5.6 per cent as at end-March, 2016.Data released on Friday showed India’s foreign exchange reserves stood at $363.35 billion, up $1.41 billion in a week to 15 July.