From: E-Mahendras NOSTRO AND VOSTRO ACCOUNT DEFINITION OF NOSTRO ACCOUNT: A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts are used to facilitate settlement of foreign exchange and trade transactions. The term is derived from the Latin word for ours. Conversely, accounts that are held by the domestic bank in its home country for foreign banks are called vostro accounts, derived from the Latin word for yours. DEFINITION OF VOSTRO ACCOUNT: The account that a correspondent bank, usually located in the United States or United Kingdom, holds on behalf of a foreign bank. A vostro account is one in which the domestic bank (from the point of view of the currency in which the account is held) acts as custodian or manages the account of a foreign counterpart. Also known as a loro account.
Posted on: Sun, 25 Jan 2015 02:52:10 +0000
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