Given the currencies of all Asian countries have depreciated against the dollar since the start of this year, their forex reserves have seen a sharp depletion.
The import cover has declined for all countries. The import cover for India stands at 8.3 months, down from 14.7 months last year.
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Indonesia has an import cover of 6.1 months, down from 9.6 months last year.
Similarly, China’s import cover is at 13.3 months, down from 16.2 months last year and a sharp fall from 22.7 months in 2013.
Countries like South Korea and Indonesia are vulnerable to a balance-of-payment shock.