seigniorage Definition
the difference between the cost of producing and distributing a currency and its actual value.
Using seigniorage: Examples
Take a moment to familiarize yourself with how "seigniorage" can be used in various situations through the following examples!
Example
The seigniorage on the new coins was estimated to be around 20%.
Example
The government's seigniorage revenue increased due to the high demand for the new banknotes.
Example
The central bank earns seigniorage by issuing currency notes.
seigniorage Synonyms and Antonyms
Synonyms for seigniorage
- monetary profit
- coinage profit
- mint gain
Phrases with seigniorage
the percentage difference between the face value of a currency and the cost of producing it
Example
The seigniorage rate for the new banknotes was set at 15%.
a situation where the cost of producing and distributing a currency exceeds its face value
Example
The country experienced negative seigniorage due to the high cost of producing and distributing the new coins.
the profits earned by a central bank from the issuance of currency
Example
The government decided to increase the seigniorage shares of the central bank to boost its revenue.
Origins of seigniorage
from Old French 'seigneuriage', from 'seignor', meaning 'lord'
Summary: seigniorage in Brief
'Seigniorage' [ˈseɪnjərɪdʒ] refers to the difference between the cost of producing and distributing a currency and its actual value. It is a monetary profit earned by the issuer of the currency, such as a central bank or government. Examples of its usage include 'The seigniorage on the new coins was estimated to be around 20%.' and 'The central bank earns seigniorage by issuing currency notes.'
