France’s central bank has completed the withdrawal of its final gold holdings from the United States, selling 129 tonnes of bullion stored at the Federal Reserve Bank of New York and replacing it with newly purchased, higher-grade bars in Europe, a move that generated nearly $15 billion in profit.
The transaction was carried out through 26 separate operations between July 2025 and early 2026.
Rather than refining and transporting the older gold, the Banque de France chose to sell the bars and purchase new bullion that meets modern international standards. The new bars are now stored in Paris.
The capital gain from the operation reached €13 billion (approximately $15 billion), pushing the bank to a net profit of €8.1 billion for the 2025 financial year, a sharp reversal from a net loss of €7.7 billion in 2024.
A Practical Decision, Not a Political One
The Banque de France was clear that the move was driven by technical and financial considerations rather than geopolitics.
Governor François Villeroy de Galhau said the new bars were to be kept in Paris because higher-standard gold is traded on a European market.
The bars held in New York, some dating to the late 1920s, no longer conformed to modern purity and weight standards used in international gold trading.
Physically shipping them back to France would have incurred significant security and insurance costs, not to mention the complexities of refining older stock to LBMA-compliant levels.
The Banque de France said in a statement: “In 2025 and at the start of 2026, while the volume of gold reserves remained unchanged, the Banque de France had to align a residual portion (5 percent) with technical guidelines, resulting in a significant realised currency gain.”
Timing the Market
The gains were largely a product of exceptionally high gold prices in 2025.
The deal was executed through 26 separate transactions, capitalising on gold price fluctuations sales in New York locked in high values for the non-standard bars, while European purchases were made at more favourable rates.
France has now consolidated all 2,437 tonnes of its gold reserves in Paris, establishing itself as the fourth-largest holder of the metal globally, following the United States, Germany, and Italy.
All reserves are now held in the bank’s secure underground facility known as La Souterraine, south of Paris.
France has been gradually modernising its gold reserves since 2005, with the bulk of its gold previously repatriated from the US Federal Reserve and the Bank of England between 1963 and 1966.
Pressure Growing on Germany and Italy
The announcement has reignited debate across Europe about the wisdom of holding national gold reserves on American soil.
Germany currently maintains 1,236 tonnes in New York vaults 37 percent of its total reserves while Italy holds 1,053 tonnes, representing 43 percent of its reserves.
Together, the two countries hold bullion valued at approximately $245 billion on American soil.
Michael Jäger, president of the European Taxpayers Association, warned that “Trump’s unpredictability and relentless pursuit of revenue make our gold no longer safe in the Federal Reserve’s vaults,” adding that repatriation “should be considered.”
France is not alone in its broader repatriation trend. India repatriated 274 tonnes in 2023, and the Netherlands led the way for Europe by withdrawing 122.5 tonnes from New York in 2014.
What Comes Next
The Banque de France still has 134 tonnes of gold to bring up to modern international standards, which it aims to complete by 2028.
The New York operation, however, marks the end of France’s overseas gold custody and closes a chapter that stretched back more than six decades.
For other European central banks watching from the sidelines, France’s $15 billion windfall may prove difficult to ignore.
