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Foreign Exchange

Foreign Exchange. FOREX. 7. How to settle Forex Transaction in IB Market. For this purpose each party opens account in Foreign currency. Nostro A/c Vostro A/c Loro A/c My a/c with You Your A/c with us Third Party A/c

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Foreign Exchange

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  1. Foreign Exchange FOREX

  2. 7. How to settle Forex Transaction in IB Market For this purpose each party opens account in Foreign currency. Nostro A/c Vostro A/c Loro A/c My a/c with You Your A/c with us Third Party A/c These are A/c for settlement of interbank transactions. Example on the next slide : >

  3. SBI CITI BANK HSBC MumbaiNew York London • SBI will call this A/c as Nostro with respect to CITI BANK. • CITI BANK will call this A/c Vostro with respect to SBI. • SBI will call HSBC as Loro A/c as it Nostro to CITI Bank. Summary : Bank which open cash credit in FC will call it Nostro and Bank where A/c is opened will call it Vostro.

  4. Types of Authorizations ( License) In India RBI Gives 3 types of Licenses for dealing in FOREX Market. License Type of Transaction Category A IB Transaction Category B Money Changer + Export Import Transaction Category C Money Changer

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