disagio Definition
a charge made for the purchase of foreign currency or securities below their nominal value.
Using disagio: Examples
Take a moment to familiarize yourself with how "disagio" can be used in various situations through the following examples!
Example
The bank charged a disagio of 2% on the purchase of the foreign currency.
Example
The disagio on the bond was 5%, which meant that the investor had to pay 95% of the face value.
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Summary: disagio in Brief
'Disagio' [dɪsˈeɪdʒiəʊ] is a financial term that refers to a charge made for the purchase of foreign currency or securities below their nominal value. It is also known as a discount and is expressed as a percentage of the face value. An example of its use is 'The bank charged a disagio of 2% on the purchase of the foreign currency.'
