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A country's readily available claim on the IMF, including its reserve-tranche position and qualifying lending to the Fund.
Members pay subscriptions based on their quotas. Part of this payment creates a reserve-tranche claim; that claim can also change as the IMF uses the member's currency in its financing operations. A member with a balance-of-payments need can draw on its reserve tranche at short notice, without the policy conditions attached to an ordinary IMF lending programme.
Imagine that a country's reserve-tranche position is SDR 30 million and it has a further SDR 10 million of qualifying readily available lending claims. Its IMF reserve position is SDR 40 million. If it draws SDR 5 million from the reserve tranche into usable foreign currency, one reserve asset falls and another rises, before exchange-rate effects and other transactions.
Jamaica’s reserves rise as borrowed foreign funds enter the balance