According to the RBI data while the forex reserves stood at $399.1 billion for the week ended February 22, it has risen sharply by over $19 billion over the last two months. Finance ministry, in its latest Monthly Economic Report for March 2019 said Rising forex reserves led to an improvement in India’s import cover. Forex reserves in terms of months of import cover has fallen from 14 months from April 2016 to 9 months in October 2018. However, the import cover has been increasing since then and was at around 11 months in February, 2019, said the report. It further added that a decline in imports would lead to improvement in current account deficit in fourth quarter of 2018-19 as forex reserves continue to rise.

Source: Indian Express May 05, 2019 21:33 UTC