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