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Resources for IMF loans to its members on non-concessional terms are provided by member countries, primarily through their payment of quotas. Each member of the IMF is assigned a quota, based broadly on its relative position in the world economy.
The reserve tranche is a segment of an International Monetary Fund member country’s quota that is accessible without fees or economic reform conditions.
Prior to 1978 it was paid in gold and known as the gold tranche. It is the amount of gold that each member country of the International Monetary fund (IMF) contributes as part of its membership obligations to the fund, and can readily borrow when facing economic difficulties.
