seigniorage

American  

[seen-yer-ij] / ˈsin yər ɪdʒ /

Or seignorage

noun

1. something claimed by a sovereign or superior as a prerogative.

2. a charge on bullion brought to the mint to be coined.

3. the difference between the cost of the bullion plus minting expenses and the value as money of the pieces coined, constituting a source of government revenue.

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seigniorage British  

/ ˈseɪnjərɪdʒ /

noun

1. something claimed by a sovereign or superior as a prerogative, right, or due

2. a fee payable to a government for coining bullion

3. the difference in value between the cost of bullion and the face value of the coin made from it

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Etymology

Origin of seigniorage

1400–50; late Middle English seigneurage < Middle French seignorage, seigneurage; seigneur, -age

Example Sentences

Last year, it cost the mint 1.5 cents to produce a penny, creating what in the coin world is known as negative seigniorage.

From Salon • Sep. 2, 2017

Bhaskar Chakravorti, of Tufts University, reckons that in America seigniorage typically brings in $20 billion a year.

From Economist • Sep. 18, 2014

The savings result from the fact that dollar coins generate more seigniorage — the government’s profit from issuing money that costs less to produce than its face value.

From Washington Post • Mar. 16, 2012

The crudest form of seigniorage dates back to the days when currency took the form of metal coins.

From Slate • Mar. 12, 2012

The gain of seigniorage from paper money is greater and is just as easily secured as that from coinage of metals.

From Modern Economic Problems Economics Volume II by Fetter, Frank Albert