Agio

Agio (Italian aggio) is a term used in commerce for exchange rate, discount or premium.

Exchange rate

The variations from fixed par values or rates of exchange in the currencies of different countries. For example, in most countries that used the gold standard, the standard coin was kept up to a uniform point of fineness. In particular, a freshly minted English sovereign was in a fixed relation to freshly minted coins of other countries: 1 ₤ = 25.221 francs = 20.429 marks = US$4.867, etc.

This rate, known as the mint par of exchange, did not necessarily coincide with the corresponding market exchange rates. The balance of trade between the countries determined the actual rate of exchange. If England has a negative balance of trade with France, for instance, currency of equal magnitude is remitted to France, which thus creates a demand for French currency. Procurement of that currency involves payment of a premium referred to as agio. It refers to exchange rate.

Exchange rate differential

Silver iodate

Silver iodate (AgIO₃) is a light-sensitive, white crystal composed of silver, iodine and oxygen. Unlike most metal iodates, it is practically insoluble in water.

Production

Silver iodate can be obtained by reacting silver nitrate (AgNO₃) with sodium iodate or potassium iodate. The by-product of the reaction is sodium nitrate.

Alternatively, it can be created by the action of iodine in a solution of silver oxide.

Uses

Silver iodate is used to detect traces of chlorides in blood.

References