Agio is a term that you may have come across while reading about finance, economics or currency exchange. It is a word that is used to describe the difference between the nominal value of a currency and its actual market value. In this article, we will explore the definition and meaning of agio, its origin, associations, synonyms, antonyms, and usage in example sentences.
Definitions
Agio is defined as the difference between the nominal value of a currency and its actual market value. It is also known as a premium, or a fee charged for the exchange of one currency for another. Agio is often used to describe the difference between the value of a currency in the domestic market and its value in the international market.
Origin
The word agio comes from the Italian word “agio” which means “ease” or “comfort”. It was first used in the 16th century to describe the profit made by money changers who exchanged coins of different values. The term was later adopted by other European languages, including French and English.
Meaning in different dictionaries
According to the Oxford English Dictionary, agio means “a premium or percentage charged for the exchange of one currency for another.” Merriam-Webster defines it as “the difference between the nominal value of a currency and its market value.” The Cambridge Dictionary describes it as “the amount by which the value of one currency is greater than the value of another currency.”
Associations
Agio is often associated with currency exchange, international trade, and finance. It is used to describe the profit made by money changers, banks, and other financial institutions that deal with foreign currency transactions. Agio is also used in the context of stock markets, where it refers to the difference between the market price of a share and its nominal value.
Synonyms
Synonyms of agio include premium, exchange rate, markup, margin, and differential.
Antonyms
Antonyms of agio include discount, rebate, markdown, and reduction.
The same root words
The word agio shares its root with the word “agile”, which means quick and nimble. Both words come from the Latin word “agilis”, which means “nimble” or “quick”.
Example Sentences
- The agio on the euro was high due to the uncertainty in the markets.
- The bank charged a 2% agio for exchanging dollars to euros.
- The agio on the stock was 10% higher than its nominal value.
- The company offered a discount of 20% on the agio for bulk purchases.
- The trader made a profit by taking advantage of the agio between the domestic and international markets.