The foreign assets exclude CBUAE
Reserve Tranche Position and Special Drawing Rights holdings with the International Monetary Fund.
The significant rise in current account surplus and decline in the trade balance deficit resulted in a balance of payment surplus of AED36.3 billion, comprising 2.6 per cent of GDP, meaning net foreign assets held by the CBUAE increased during the same period by AED36.3 billion, inclusive CBUAE's
Reserve Tranche Position (RTP) and Special Drawing Rights holdings with the International Monetary Fund, WAM said.
The foreign assets exclude Central Bank's
Reserve Tranche Position and Special Drawing Rights holdings with the International Monetary Fund.
Summary of IMF members' quota,
reserve tranche position, SDR holdings, outstanding credit, recent lending arrangements, projected payments due to the IMF, and historical transactions with the IMF.
In exchange for the use of the IMF's holdings of members' currency in loan transfers, the member-country acquires an equivalent increase in SDR in its
reserve tranche position but there is no charge in the gross international reserves level.
The low
reserve tranche, which includes net transaction accounts over $12.4 million and up to $79.5 million, will be subject to a 3 percent reserve ratio.
The Federal Reserve Board announced on October 4, 2005, the annual indexing of the low
reserve tranche and of the reserve requirement exemption amount for 2006.
Reserve Tranche Policies: A member country is in Reserve position when its quota exceeds the IMF holdings of its currency excluding credits extended to it.
The second principle is that a member of the Fund can use its reserves to meet a capital outflow but win not be allowed to use the Fund's general resources to meet a large or sustained outflow, with the exception of
reserve tranche purchases.(14)
Reserve tranche purchases correspond to the member's contribution in reserve assets to the Fund's capital.
The Federal Reserve Board on October 6, 2004, announced the annual indexing of the low
reserve tranche and of the reserve requirement exemption amount for 2005.