Mr. Ezekiel, Assistant Chief of the Special Studies Division in the Research and Statistics Department, is a graduate of the University of Bombay. He taught economics at St. Xavier’s College, Bombay, and at the University of Bombay, and was Financial Editor of The Economic Times. He has contributed a number of articles to economic journals and is the author of The Pattern of Investment and Economic Development, to be published shortly by the University of Bombay.
Hereafter cited as IFS.
International Monetary Fund, Annual Report, 1965, Appendix I, C.
Most of these items can be calculated from data presented in Table 1 of IFS. As this table appears at present (IFS issue of June 1966), gold tranche positions are equal to column 2 + column 3 — column 9 when the result is positive, for those countries which have drawing rights. Fund borrowings from members are shown in column 4. Member reserve positions in the Fund, which are equal to the sum of gold tranche positions and Fund borrowings from members are directly shown in column 11. It follows that gold tranche positions can also be obtained as column 11 — column 4. Net credit tranche use is equal to column 9 — column 2 — column 3 when the result is positive.
E.g., payment by a member of Fund charges in its own currency.
The definition of gold tranche positions given earlier in the paragraph ensures that countries not legally entitled to draw, e.g., because they had neither declared par values for their currencies nor been exempted from having to do so, are not credited with a gold tranche position, whatever the result of a mechanical calculation might be.
Briefly, gross reserve creation is equal to Fund gold holdings plus Fund gold deposits and investments plus net credit tranche use minus other liabilities, etc. Adjusted net reserve creation has been defined as gross reserve creation minus Fund gold holdings minus Fund gold deposits and investments. Therefore, adjusted net reserve creation is equal to net credit tranche use minus other liabilities, etc.