The Bank of France (BdF) has quietly completed the repatriation of French gold still held in the United States, bringing to an end nearly a century of partial storage abroad. The operation covered 129 tonnes of precious metal — around 5% of the country’s total reserves — previously held at the Federal Reserve Bank of New York.

Rather than physically transporting the gold bars to France, the institution opted for a more efficient financial solution. Between July 2025 and January 2026, it sold older bars that no longer met current international standards, before purchasing modern, standard-compliant bullion in Europe. The newly acquired gold has since been stored in the Bank of France’s vaults in Paris.

This strategy allowed the central bank to avoid the costs and logistical constraints associated with refining and transatlantic transportation. It forms part of a broader reserve modernization program launched around two decades ago and reinforced by a 2024 internal audit.

Taking advantage of rising gold prices, the operation generated an estimated capital gain of nearly €13 billion ($15 billion). This windfall contributed to a significant financial turnaround: the Bank of France reported a net profit of €8.1 billion for 2025, after recording a €7.7 billion loss in 2024.

France now holds the entirety of its 2,437 tonnes of gold in Paris, in the central bank’s underground vaults. While the total volume of reserves remains unchanged, the quality of the bars has been upgraded to meet current international standards.

Bank of France Governor François Villeroy de Galhau stressed that the decision was not politically motivated, but driven by practical considerations. According to him, sourcing gold that meets modern standards is now easier on the European market than upgrading older holdings stored abroad.

However, around 134 tonnes of older gold — in the form of bars and coins — still need to be brought up to standard by 2028.

France’s move has also drawn reactions abroad, particularly in Germany, where part of the country’s gold reserves remains stored in the United States. Some policymakers and economists have revived the debate over whether those reserves should also be repatriated, arguing that current geopolitical and economic uncertainties may justify a similar strategy.

Through this operation, the Bank of France has strengthened control over its strategic reserves while taking advantage of favorable market conditions.

 

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