Nostro Account

A bank maintaining an account in a foreign currency with another bank is referred to as having a nostro account. The term "nostro" is derived from Latin, meaning "our," indicating that it is the bank's own account located abroad. Conversely, a vostro account, which translates to "your" in Latin, is an account held by a foreign bank with a local bank in the local currency. Nostro and vostro accounts play a role in facilitating international trade and foreign exchange transactions.