Reserve Tranche Position
A country's Reserve Tranche Position is the difference between the International Monetary Fund's holdings of that country's currency and the country's IMF-designated quota.Background
The primary means of financing the International Monetary Fund is through members' quotas. Each member of the IMF is assigned a quota, part of which is payable in special drawing rights or specified usable currencies, 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. 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 Part of the quota can be withdrawn from the IMF without any interest during critical situations of a country such as BOP crises. This part of the money which can be withdrawn without any interest is the RTP.
