Definition, Meaning & Synonyms
nostro-account
noun
/ˈnɒstrəʊ əˌkaʊnt/
Definition
A nostro account is a bank account held by a domestic bank in a foreign bank, used to hold foreign currency.
Examples
- The bank utilizes its nostro account to settle transactions with overseas clients.
- Maintaining a nostro account enables quicker access to funds in foreign currencies.
- During the transaction, the bank checked the balance of its nostro account to ensure sufficient funds.
Meaning
The term refers to accounts that domestic banks maintain in foreign banks to manage and facilitate international transactions.
Synonyms
- Foreign currency account
- International bank account
- Correspondent account
