Definition, Meaning & Synonyms

agio

noun

/ˈaɡiˌoʊ/

Definition

A term used in finance to describe the premium charged for the exchange of currency or the cost of converting one form of monetary value to another.

Examples

When traveling abroad, be sure to check the agio on your currency conversion to avoid overpaying.
The agio increased significantly due to the economic instability in the region.

Meaning

Agio refers to the additional amount one must pay when exchanging currencies, typically arising from market fluctuations or differences in interest rates.