HOME

TheInfoList



Click Here for Items Related To - Reserve Tranche Position
OR:
Reserve Tranche Position on:   [Wikipedia]   [Google]   [Amazon]

A country's Reserve Tranche Position (RTP) is the difference between the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster gl ...
's (IMF) holdings of that country's currency and the country's IMF-designated quota.


Background

The primary means of financing the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster gl ...
(IMF) is through members' quotas. Each member of the IMF is assigned a quota (membership fee), part of which is payable in
special drawing rights Special drawing rights (SDRs, code ) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF, and not a currency ''per se''. They represent a claim ...
(SDRs) or specified usable
currencies A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general defi ...
("reserve assets"), and part in the member's own currency. The difference between a member's quota and the IMF's holdings of its currency is a country's Reserve Tranche Position (RTP).International Monetary Fund (IMF) and Special Drawing Rights (SDRs)
/ref> Reserve Tranche Position is accounted among a country's
foreign-exchange reserves Foreign exchange reserves (also called forex reserves or FX reserves) are cash and other reserve assets such as gold held by a central bank or other monetary authority that are primarily available to balance payments of the country, influence ...
. Part of the quota can be withdrawn from the IMF without any interest during critical situations of a country such as Balance of Payment (BOP) crises. This part of the money which can be withdrawn without any interest is the RTP.


See also

*
Financial Transactions Plan The Financial Transactions Plan of the International Monetary Fund is the mechanism through which the Fund finances its lending and repayment operations, to its members, in the General Resources Account. It was formerly called the operational budg ...
*
Enhanced structural adjustment facility The Enhanced Structural Adjustment Facility (ESAF) was a program of financial assistance given to poor countries from December 1987 through 1999 through the International Monetary Fund. It replaced the Structural Adjustment Facility (SAF) and was ...


References

{{finance-stub International Monetary Fund