Question

Local currency account maintained by a local bank for a foreign (correspondent) bank is called-

Q: Answer-Local currency account maintained by a local bank for a foreign (correspondent) bank is called-

Nostro account refers to an account that a bank holds in a foreign currency in another bank. Nostros, a term derived from the Latin word for ours, are frequently used to facilitate foreign exchange and trade transactions. The opposite term vostro accounts , derived from the Latin word for yours, is how a bank refers to the accounts that other banks have on its books in its home currency.