Both Nostro and Vostro account are normally used in the context of foreign exchange transactions done by the banks or during currency settlement.
A Nostro Account
is an account denominated in a foreign currency established
through your local bank at a bank in the respective country of the currency desired. The terms
"nostro"
and "vostro"
are derived from Latin terms meaning "ours" and "yours" respectively.
A nostro account is our account in a different country and a vostro account
is a
foreigner's
account
in our country. A nostro account
is always in
foreign Currency while a vostro account is in Home currency.