AGIO, a term used sometimes to express the variations from fixed pars or rates of ex change, but more generally to indicate by per centages the differences in the valuations of moneys. The Italian word aggio is explained to mean ' an exchange of money for some con sideration.' Thus, if a coin is reduced in weight, and the real value is not equal to the nominal value, the difference is the agio. Where it is in the power of the state to prevent the degradation of the coin below the standard, no calculations of agio, strictly so called, are rendered necessary. In some states, the currency is made up of the dete riorated coins of the neighbouring countries with which the inhabitants have dealings. Under these circumstances, banks were, at different times, established by the governments of Venice, Genoa, Hamburg, Amsterdam, &e., which, under the guarantee of the state, should be at all times bound to receive deposits and to make payments, according to some standard value. The money or obligations of these banks bears a premium equivalent to the de terioration, and this premium is called the agio of the bank.
As the current coins of every country have a kind of medium value at which they are ge nerally taken, the term agio is also applied to express what must be paid over and above this medium value. The kinds of money on which, in the case of exchange, an agio is paid, are not always the more valuable intrinsically, but those which are most in request.
The term agio is also used to signify the rate of premium which is given, when a person having a claim which lie can legally demand in only one metal, chooses to be paid in another.
Thus, in France, silver is the only legal stan dard, and payments can be demanded only in silver coin : a circumstance which is found to be practically so inconvenient, that the receiver will frequently pay a small premium in order to obtain gold coin, which is more easily trans portable : this premium is called the agio on gold.