agio

/ˈædʒioʊ/
noun
  1. A fee or premium paid to exchange one currency for another, or to convert a less valuable currency into a more valuable one.
    • Travelers often have to pay an agio when exchanging foreign currency at airports.
    • The bank charged an agio of 2% for converting dollars to euros.
    • The agio on the gold coins made them more expensive than their face value.
  2. The difference in value between two currencies or between a currency and its equivalent in another form (e.g., paper money vs. coins).
    • The agio between the old and new banknotes was small but noticeable.
    • In some countries, the agio on silver coins fluctuates with market prices.
    • Investors watched the agio closely to find profitable exchange opportunities.
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