seigniorage

or seign·or·age

[ seen-yer-ij ]

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.

seigniorage

/ 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

Word History and Origins

Origin of seigniorage¹

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

Example Sentences

Led by Philip Diehl, then the Mint’s director, the program was widely considered a success: It raised billions in seigniorage, or excess revenues, for the Mint, Mr. Diehl said.

From New York Times

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

Probably the biggest is “seigniorage”: the government’s ability to print money that costs nothing but can be spent at face value.

From Washington Post

The U.S. collects enormous seigniorage revenue that accrues to the economy when the Federal Reserve prints dollars that are exported abroad in exchange for foreign goods and services.

From Wall Street Journal

Guaranteed future profits from money-printing—known as seigniorage—mean they can usually dig themselves out of a capital hole: bank notes cost little to produce but can be used to buy interest-bearing securities.

From Wall Street Journal