Nostro account

A nostro account is a bank account containing the currency of the country in which the funds are held. These funds are intended for use in foreign exchange and other international trade transactions.

Nostro accounts are usually held by banks, as well as larger corporations that engage in significant amounts of international trade. These entities may have nostro accounts in any country that has a convertible currency, such as anywhere in Europe, Japan, the United States, and the United Kingdom. When a currency is not convertible, a bank or other business will arrange for a third party that does business in the applicable country to make the necessary payment on its behalf.

Related Courses

Corporate Cash Management 
Treasurer's Guidebook