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; see 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

Mr Rogoff thinks that scrapping physical money would reduce seigniorage revenues.

From Economist • Sep. 18, 2014

Defenders of loose change might say this is nothing more than a trivial editorial gimmick, meaningless both in a larger economic context and relative to the $488.8 million in positive seigniorage the U.S.

From Slate • Mar. 19, 2012

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

Even the exportation of small change may become a profitable speculation as soon as the amount of depreciation of paper money exceeds the seigniorage.

From Principles Of Political Economy by Lalor, John J. (John Joseph)