Nostro and vostro accounts

A banking term to describe an account that a bank holds with a foreign bank. Nostro accounts are usually in the currency of the foreign country.

Nostro Account is a demand deposit account or a current account, deposited by a local bank with the foreign bank in the currency of the country where the money is held. Mostly, both banks usually have business relation or are counter parties or are correspondent banks. It is also called "Correspondent account" or " Our account".

See also, Vostro account and Loro account.