Editing Nostro and vostro accounts (section)

==Understanding terminology==

===Base description===
In normal usage:
* A ''nostro'' account is in foreign currency (a record of funds held by a bank in another country in the currency of that country) i.e. a bank in country A keeping a record of money held by a bank in country B, in the currency of country B.
* A ''vostro'' account is in the local currency of the bank where the money is being held i.e. it is the bank in country B's record of the money kept by the bank from country A with it.

For these accounts, the domestic bank is acting like a custodian or managing the accounts of a foreign counterpart. These accounts are utilized for facilitating the settlements of forex and foreign trades.

A ''client'' bank elects to open an account with another ''facilitator'' bank.  The ''facilitator'' bank will assist the ''client'' bank in making payments in its country's currency, usually using its own access to primary clearing arrangements (generally with the central bank in the country where the currency is considered a local currency). In some cases, the ''facilitator'' bank may not be a primary clearing member but they will have the ability to make payments in local currency, possibly through another bank in the same country.