It is equally important to note that short term debt as a percentage of reserves have also declined largely due to increase in the size of foreign exchange reserves. The sharp increase in forex reserves and improvement in macroeconomic fundamentals, including the short-term debt profile, have significantly enhanced the resilience of the economy to external shocks.
Political stability in terms of formation of a new Government with clear mandate, Government’s continued commitment to fiscal consolidation and sustained decline in oil prices have boosted the confidence in the country’s macro-economy. The recent upgrade in country’s outlook from negative to stable by S & P in a sense reflects and reinforces this new confidence.