Young voice:
What? Seign-ior-age?! That sounds like something from the Middle Ages!

Older voice:
It does! (Rire). In fact, it comes from the time when Lords – or “Seigneurs” in French – had the right to “mint money”, as we say.

YV:
Oh, OK… And who has that right these days?

OV:
The National Bank has the right to produce banknotes and put them into circulation – it was the Belgian State that decided that originally. Since the introduction of the euro, the National Bank has retained this power, but within a European framework this time.

YV:
Lucky them! But...how do they pay for the banknotes, their employees and all their other operations?

OV:
For that, they need revenue, that’s true. The value of the notes they put into circulation helps them to grant loans to banks or invest. These activities earn interest – which is revenue. And that’s what’s known as “seigniorage”.

YV:
But...are they really allowed to keep all that revenue for themselves? Doesn’t the money belong to everyone?

OV:
You’re right. They’re only allowed to keep part of it. The other part goes to the State. And so you also benefit from it, my Lord!

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