France’s central bank has strategically moved five per cent of its gold from New York to Paris. The Banque de France, however, didn’t just shift the reserves; it sold the bars held at the US Federal Reserve and used those funds to buy new bullion, earning €12.8 billion
It can be called a golden plan or a golden strategy! France has quietly wrapped up a long-running effort to bring its gold reserves back home, and in the process earned a windfall of billions.
The Banque de France, the country’s central banker, has pulled all of its gold holdings held in New York and replaced it with a similar amount of gold bars in its vaults in Paris. In the process, the French bank gained €12.8 billion (Rs 13.75 lakh crore).
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France moves its gold reserves from New York
Between July 2025 and January 2026, the Banque de France (BdF) moved 129 tonnes of gold, almost five per cent of its total gold reserves, stored in New York back home. With this move, France has moved all of its gold from the New York Federal Reserve, a practice that dates back to World War II — the logic being that the yellow metal held in Manhattan was safe from any invasion that might sweep the continent.
In fact, all of France’s gold reserves, roughly 2,437 tonnes, are now held at the BdF’s underground vault in La Souterraine. France has the fourth largest gold reserves in the world after the United States, Germany and Italy (and excluding the International Monetary Fund). The Bank of France still has 134 tonnes of gold left to upgrade, a process it aims to complete by 2028.
However, instead of physically transporting gold across continents, France chose the sell-and-rebuy strategy — offloading US-held reserves and purchasing equivalent, higher-grade bars within Europe. This approach helped avoid logistical issues while improving the quality and liquidity of its holdings.
France’s total gold reserves of about 2,437 tonnes – the fourth-largest in the world – are now all in Paris. This includes 134 tonnes of older bars and coins, which the bank intends to bring up to standard by 2028. File image/AFP
Simply put, France took advantage of the record-high gold prices to sell the gold stored in New York and used the difference earned to purchase higher-standard bullion on the European market and stored it in Paris.
Through 26 transactions, the French bank made a significant profit of €12.8 billion, contributing significantly to the bank’s financial turnaround. The French financial institution reported a net profit of €8.1 billion for 2025, a sharp reversal from the €7.7 billion loss recorded the previous year, as per an Analytics Insight report.
Reasons for France moving the gold reserves
But what led France to make this move? French authorities framed the move as a technical upgrade. BdF’s Governor François Villeroy de Galhau described it as part of a broader effort to replace older, “non-standard” gold bars with bullion that meets current international specifications.
However, the move serves as a reminder of when France shifted its gold in the 1960s. Between 1963 and 1966, French President de Gaulle initiated the secret operation “Vide-Gousset”, repatriating 3,313 tonnes of gold reserves from the vaults of the Federal Reserve in New York and the Bank of England in London.
At the time, De Gaulle feared America’s deficit in its balance of payments would rupture Bretton Woods and lead to a devaluation of the dollar against gold.
Additionally, central banks worldwide have been gradually repatriating foreign-held gold for a few years now. The move is aimed at sovereignty and direct control over assets. In fact, according to the World Gold Council, 59 per cent of central banks now prefer domestic storage, up from 41 per cent in 2024.
Central banks worldwide have been gradually repatriating foreign-held gold for a few years now. File image/ReutersOther countries moving their gold reserves home
France is not the only country that has shifted its gold back from the US.
Germany, which has the world’s second-largest gold reserves, has been having a similar conversation. Some economists have even called on their government to withdraw its gold from the US, citing concerns about “unpredictable” policies under President Donald Trump. The Bundesbank, Germany’s federal bank, holds about 1,236 tonnes of gold in the US, or about 37 per cent of its total.
“Trump is unpredictable, and he does everything to generate revenue. That’s why our gold is no longer safe in the Fed’s vaults,” Michael Jäger, head of both the Association of German Taxpayers and the European Taxpayers Association, was quoted as saying.
India’s Reserve Bank of India has also increased its repatriation of gold from abroad. Data shows that the country’s central bank has brought back over 274 tonnes of gold since March 2023, including 64 tonnes in the first half of FY 2026 alone. Around two-thirds of India’s roughly 880.8 tonnes of gold reserves are now physically in the country, with the rest held overseas under custodial arrangements.
The RBI’s move has come after taking geopolitical risks into consideration, as well as a desire to increase the country’s liquidity of reserves.
With inputs from agencies
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