Seigniorage

Profit from minting money

Seigniorage, also spelled seignorage or seigneurage, is the difference between the value of money and the cost to produce and distribute it. The term can be applied in two ways:Seigniorage derived from specie is a tax added to the total cost of a coin that a customer of the mint had to pay, and which was sent to the sovereign of the political region. Seigniorage derived from notes is more indirect; it is the difference between interest earned on securities acquired in exchange for banknotes and the cost of printing and distributing the notes.

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