Definition

A term used to describe the extra amount or percentage added when exchanging a higher quality currency for a lower quality one. It can also refer to the premium or discount applied to foreign exchange bills.

Example

The bank charged an agio for the currency exchange.

Conversation

Have you heard about the concept of agio in currency exchange?

Yeah, I think it refers to the premium on better money, right?

Exactly! It’s interesting how it affects foreign bills too.

I know, it really shows how complicated exchanging money can be.

Synonyms & Antonyms

Root Explanation

Agio originates from Italian 'agio', meaning ease or comfort, which is derived from the Latin 'agere', meaning to do or to act. The term refers to the ease or profit gained in financial transactions, particularly in currency exchange.

Memory Tip

Think of 'ease' or 'comfort' when you hear 'agio', as it relates to the ease or profit in financial dealings.

Visually Confused Words