Nostro account: Difference between revisions
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imported>Doug Williamson m (Spacing 21/8/13) |
imported>Doug Williamson (Linked to The Treasurers Handbook - Payments and payment systems) |
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* [[Loro account]] | * [[Loro account]] | ||
* [[Vostro account]] | * [[Vostro account]] | ||
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Revision as of 16:25, 29 November 2014
1.
An account held by a domestic bank with a (different) foreign bank to facilitate foreign currency transactions.
2.
An account held by a bank with a foreign bank, specifically when the account balance stands in favour of the domestic bank.
The term 'nostro' is derived from Latin, meaning 'in our favour'.
(In this context, the term 'vostro account' is used when the balance on the account stands in favour of the foreign bank.)
