UPSC Setu Logo
Economy2020
“Gold Tranche” (Reserve Tranche) refers to:

Explanation

The "Gold Tranche," or Reserve Tranche, refers to the amount of a member country's quota in the International Monetary Fund (IMF) that can be accessed without stringent conditions, equating to 25% of the country's quota. This mechanism provides liquidity to member countries during balance of payments crises, serving as an essential feature of the IMF's financial assistance framework. Understanding the Gold Tranche is crucial for comprehending how multilateral financial institutions facilitate economic stability and cooperation among member nations, which aligns with UPSC's focus on international institutions and global economic governance.

New here?