What is Nostro Account?

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A Nostro Account (from the Latin *nostro*, meaning "ours") is an account that a domestic bank holds with a foreign correspondent bank, denominated in the currency of the foreign country, which is essential for settling international payments, foreign exchange transactions, and managing liquidity in foreign markets.

Nostro Account

What is Nostro Account?

What is the primary function of a Nostro Account and how does it facilitate cross-border payments?

How do Nostro Accounts differ from Vostro Accounts, and what is the significance of this distinction in correspondent banking?

Why are Nostro Accounts facing modernization challenges, and how are new technologies like blockchain and real-time gross settlement (RTGS) systems impacting their future?

What are the key operational and regulatory risks associated with managing a portfolio of Nostro Accounts, and how is reconciliation performed?

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