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With India's foreign exchange reserves touching an all-time high of $322 billion, the import cover has increased to eight-and-a-half months, against seven months when the 2013 currency crisis was at its peak. An import cover of 8-10 months is seen as one of the factors that are key to stabilising the exchange rate. But the reserves-to-external-debt ratio declining for the past few years has been a cause for concern, even as the reserves-to-short-term-external-debt ratio has improved. But even the latter is much lower than the 2003-04 level. The ratio of foreign exchange reserves to GDP has been declining since the global financial crisis of 2008
