ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Distinct Signs of Discomfort on the Horizon

External Account

There are dark clouds on the external sector front. The current account defi cit touched its widest ever level in 2011-12, foreign exchange reserves are increasingly providing import cover for a shorter and shorter period and the ratio of volatile capital to reserves is rising.

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