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

The profits they earn in this way, known as seigniorage, are sent to government coffers.

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

Slowly but surely, logic should push cash-lovers in that direction and Americans will have to say farewell to our seigniorage heyday.

From Slate • Mar. 12, 2012

It advocates unity of the monetary system throughout the entire state, with strict integrity in the quality of the coin, and the charge of a seigniorage sufficient to cover the expenses of mintage.

From Encyclopaedia Britannica, 11th Edition, Volume 7, Slice 3 "Convention" to "Copyright" by Various