In the context of which of the following organisations, do you hear the term Reserve Tranche Position (RTP)?

The Correct answer is International Monetary Fund.

Key Points

• The Reserve Tranche Position (RTP) is a part of a member country's quota in the International Monetary Fund (IMF) that can be accessed without stringent conditions.
• It represents a portion of the member’s quota that has been paid in foreign currency and is held by the IMF.
• The RTP allows countries to draw upon their reserves with the IMF without being subject to the usual IMF conditionality.
• This mechanism is used to provide liquidity to member countries facing balance of payments issues.
• IMF members can utilize their RTP up to a certain limit before needing to negotiate a formal IMF program.

 Additional Information

• World Bank
  • The World Bank is an international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects.
  • It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
  • The World Bank's stated goal is to reduce poverty by providing loans to developing countries for development projects (e.g., bridges, roads, schools, etc.)
• Organisation for Economic Co-operation and Development (OECD)
  • The OECD is an international organisation that works to build better policies for better lives.
  • Its goal is to shape policies that foster prosperity, equality, opportunity, and well-being for all.
  • The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems.
  • It was founded in 1961 and has its headquarters in Paris, France.
• World Trade Organisation (WTO)
  • The WTO is an intergovernmental organisation that regulates and facilitates international trade between nations.
  • It officially commenced on 1 January 1995 under the Marrakesh Agreement, replacing the General Agreement on Tariffs and Trade (GATT).
  • The WTO deals with regulation of trade in goods, services and intellectual property between participating countries by providing a framework for negotiating trade agreements and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements.