Damocles Score

  • Damocles Score/Index published by Nomura recently analyses the strength of the currencies of the nations. 
  • Named after the story of Damocles Sword.
  • It is marked from 0 - 200. 
  • The score above 100, points at the vulnerability of the respective currency to an exchange rate crisis in next 12 months. While the reading over 150 signals a crisis can erupt at any moment. 
  • Sri Lanka is most at risk, with a score of 175, followed by South Africa and Argentina, with 143 and 140, respectively. 
  • India's reading stood at 25, Pakistan at 136, and China at 37.