gold tranche position in International Monetary Fund
(banking) Represents the amount that a member country can draw in foreign currencies virtually automatically from the International Monetary fund if such borrowings are needed to finance a balance-of-payments deficit.
(U.S.) In the case of the U.S., the gold tranche itself is determined by the U.S. quota paid in gold minus the holdings of dollars by the fund in excess of the dollar portion of the U.S. quota. Transactions of the fund in a member country’s currency are transactions in monetary reserves. When the fund sells dollars to other countries to enable them to finance their international payments, the net position of the United States in the fund is improved. An improvement in the net position in the gold tranche is similar to an increase in the reserve assets of the United States. On the other hand, when the United States buys other currencies from the fund, or when other countries use dollars to meet obligations to the fund, the net position of the United States in the fund is reduced.