Question
A current account maintained by a domestic bank with a
foreign bank, in a foreign country is known as?ÂSolution
Banks deal in Forex market and so have to maintain stocks of foreign currencies in the form of bank accounts with their overseas branches / correspondents. It refers to an account that a domestic bank holds in a foreign currency in foreign bank. Nostros, a term derived from the Latin word for “ours,” are frequently used to facilitate foreign exchange and trade transactions. Nostro A/C (our account with you) – is a current account maintained by a domestic bank (say SBI) with a foreign bank (say Citi Bank) in a foreign country.
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The actual achievements compared with the objectives of the job is -
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