Vostro Account

A Vostro Account, from the Latin for "yours," is an account that a correspondent bank holds on behalf of a foreign bank in the correspondent bank's local currency, serving as a critical mechanism for facilitating cross-border payments, foreign exchange, and international trade settlements. This account, viewed from the perspective of the domestic bank holding the funds, records the foreign bank's deposits and transactions within the domestic financial system, enabling the foreign bank to offer local currency services to its clients without establishing a physical presence.