Import Cover: Rises to 10 months
Part of: GS Prelims and GS-III- Economy
- RBI has stated that the foreign exchange reserves has increased to $429.84 billion as at end June 2019 from $412.47 billion as at end March 2019.
- As a result, the import cover rose to 10 months compared with 9.6 months
- Import Cover measures the number of months of imports that can be covered with foreign exchange reserves available with the central bank of the country.
- Eight to ten months of import cover is essential for the stability of a currency.