This account allows the bank to make international transactions and facilitates foreign exchange operations.
A Nostro Account, also referred to as a correspondent account, is a financial tool used by banks to manage international transactions and foreign exchange operations. It is essentially an account that a bank holds in a foreign currency at another bank, allowing for seamless cross-border transactions. This account is crucial for facilitating global trade and maintaining strong relationships with other financial institutions. Through the use of a Nostro Account, banks are able to efficiently navigate the complexities of the global financial market and provide essential services to their clients.
