Sage-Tips

What is gold tranche or reserve tranche?

Reserve tranche is the component of a member country’s quota with the IMF that is in the form of gold or foreign currency. For any member country, out of the total quota, 25\% should be paid in the form of foreign currency or gold. Hence this is called as reserve tranche or gold tranche.

What is RBI reserve position with IMF?

The country’s reserve position with the IMF also fell by $15million to $5.096 billion, as per the data. India’s forex kitty had increased by $889 million to a lifetime high of $621.464 billion in the week ended August 6, 2021.

What is low reserve tranche?

The low reserve tranche, which is the amount of a bank’s net transaction accounts that may be subject to a reserve requirement ratio of not greater than 3\%, will be set at $182.9 million in 2021, an increase from $127.5 million in 2020.

What is reserve tranche position of India?

Reserve Tranche Position is accounted among a country’s foreign-exchange reserves. Part of the quota can be withdrawn from the IMF without any interest during critical situations of a country such as Balance of Payment (BOP) crises. This part of the money which can be withdrawn without any interest is the RTP.

What is mean by gold tranche?

noun. the quota of 25 per cent to which a member of the IMF has unconditional access. Prior to 1978 it was paid in gold and known as the gold tranche.

What is reserve tranche position Quora?

The reserve tranche position(RTP) is portion of the required quota of currency that each International Monetary Fund (IMF) member country must provide to the IMF that can be utilized for its own purposes without a service fee. The reserve tranche portion of the quota can be accessed by the member nation at any time.

What is foreign exchange reserve Upsc?

Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities. It needs to be noted that most foreign exchange reserves are held in US dollars.

What is gold trench?

It is a portion of a member country’s quota that can be withdrawn free of charge at its own discretion. The first 25\% reserve tranche portion charges no interest. Anything beyond that could require permission and be subject to a service fee.

What is the reserve requirement 2021?

The Regulation D amendments set the reserve requirement exemption amount for 2021 at $21.1 million of reservable liabilities (up from 16.9 million in 2020).

What is IMF Upsc?

The International Monetary Fund (IMF) is an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

What is a country’s Reserve Tranche Position?

A country’s Reserve Tranche Position ( RTP) is the difference between the International Monetary Fund ‘s (IMF) holdings of that country’s currency and the country’s IMF-designated quota. The primary means of financing the International Monetary Fund (IMF) is through members’ quotas.

What is the IMF’s Reserve Tranche?

Prior to 1978, the reserve tranche was paid in gold, which was non-interest bearing and known as the gold tranche. The RTP increases when the IMF borrows out of a nation’s currency that was gathered as part of the quota.

What is reverse Tranche Position (RTP)?

To understand Reverse Tranche Position (RTP) One needs to Understand Quota (and SDR). The reserve tranche position(RTP) is portion of the required quota of currency that each International Monetary Fund (IMF) member country must provide to the IMF that can be utilized for its own purposes without a service fee.

What is the difference between reserve and credit tranche?

For any member country, out of the total quota, 25\% should be paid in the form of foreign currency or gold. Hence this is called as reserve tranche or gold tranche. The remaining 75\% can be in domestic currencies and it is called credit tranche.