Official reserve transactions are the transactions made by the Central Bank which cause changes in its official reserves of foreign exchange. This happens only when an economy withdraws from its stock of foreign exchange reserves to finance deficit in its overall BOP.

Financing the deficit by selling assets or by borrowing from abroad by monetary authorities of a domestic country is known as official transactions or balancing the surplus by lending to abroad or purchasing assets from abroad by monetary authorities is called official reserves.#Ramanjeet kaur ur ans..The decrease in official reserves is known as overall Balance of Payments deficit and the increase in official reserves is known as overall Balance of Payments surplus.Importance of payments deficit or surplus are:(i) Overall Balance of Payments deficit or surplus can be adjusted through official transactions.(ii) It fulfills the good of basic promise that the monetary authorities are the ultimate financiers of any deficit in the Balance of Payments or the receipts of any surplus.#ankush Aap bata do meko ni pata h isliye...meko jitna pata tha i told rest u make the changes as i m not a teacher so cant be perfect with my ans n nor the teachers or anyone r perfect..so take the honour to tell # ankush

It is a type of account used in balance of payments accounting to keep track of central banks  reserve  asset transactions with each other. The official settlement account keeps track of transactions involving gold, foreign exchange reserves, bank deposits and special drawing rights....i m not sure ...making a guess...