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Definition: Reserve tranche purchases

Balance of Payments, IMF

Reserve tranche purchases are purchases from the Fund of other currencies that do not cause Fund holdings of a member's currency to exceed the member's quotas. A purchase from the fund is recorded as an increase in foreign exchange holdings and a decrease in the reserve position of the Fund; a repurchase is recorded as a decrease and an increase, respectively. Purchases in the reserve tranche are not regarded as a use of Fund credit, are not subject to charges, and do not require repurchase. <a href=""></a>
International Monetary Fund (IMF), "Balance of Payments Manual" (BOP), Fifth Edition, Washington D.C., 1993