The Banque de France (BdF) has pulled all its gold reserves from the United States. According to reports, this gold has been replaced with an equivalent amount in its vaults in Paris. The gold amounted to 129 tonnes – approximately 5 per cent of the total gold stored in the bank – and has resulted in a massive €12.8 billion (USD 15 billion) capital gain for the central bank. For the uninitiated, France is one of the world’s leading holders of gold and has been storing the precious metal with the Federal Reserve Bank of New York since the late 1920s.
According to reports, instead of physically shipping and refining older or non-standard gold, which would have been a logistically complex and costly process, the central bank decided to sell the New York-held bullion at peak market prices and purchase new, modern international standard bars.
France now holds the entire Gold in Paris
With this, France now holds its entire gold reserve of about 2,437 tonnes in Paris. The pulling out of 129 tonnes was completed through 26 separate transactions.
Why did France pull out gold from New York vaults?
France pulled out its gold reserves from New York vaults, citing a growing global dollar crisis reminiscent of 1971. This strategic move reflects deepening mistrust in the US dollar as a stable reserve currency amid escalating geopolitical tensions.
Financial analysts suggest this repatriation could trigger a domino effect, prompting other nations to secure their physical bullion as a hedge against potential American economic sanctions or currency devaluation.
However, this is nothing unexpected, and France seems to be following the growing global trend of gold repatriation. Several central banks worldwide seek greater direct control over their physical assets amid shifting geopolitical landscapes and economic uncertainty.
Turning losses into profits
However, the timing of selling its non-standard gold seemed well-thought-out. As a result of the record-high gold prices in early 2026, the realised currency gain of USD 15 billion allowed the central bank to report a net profit of €8.1 billion for the 2025 financial year. This marks a dramatic turnaround from the €7.7 billion net loss recorded in 2024.
