Banque de France has realized a staggering €12.8 billion capital gain after upgrading 129 tonnes of gold—roughly 5 percent of its total reserves—between July 2025 and January 2026, capitalizing on record-high prices during the period.
The transaction involved selling the last of France’s gold held in New York and replacing it with modern, international-standard bullion purchased on the European market. This move completes a decades-long effort to repatriate and standardize the nation’s gold reserves, with all 2,437 tonnes—ranking fourth globally—now stored in Paris. The BdF executed 26 transactions to secure the new gold, opting against refining and transporting the older stock due to cost and efficiency considerations.
France’s gold overhaul dates back to 2005, with significant repatriation occurring between 1963 and 1966 from the US Federal Reserve and the Bank of England. Of the current reserves, 134 tonnes of older bars and coins remain to be upgraded by 2028. Governor Francois Villeroy de Galhau emphasized that the decision to move the gold from the US was driven by market access to higher-standard bullion in Europe, not political motives.
The financial windfall bolstered the BdF’s 2025 net profit to €8.1 billion, a sharp rebound from a €7.7 billion loss in the prior year. This gain comes amid a broader trend of central banks reassessing gold storage amid geopolitical uncertainties.
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Across the border, Germany faces mounting pressure to follow suit. The Bundesbank still holds 1,236 tonnes—about 37 percent of its total reserves—in the US, prompting concern among some economists over exposure to unpredictable US policies under President Donald Trump.
Michael Jäger, head of the Association of German Taxpayers and the European Taxpayers Association, warned that Germany’s gold is at risk in the Federal Reserve’s vaults due to potential revenue-driven actions by the current administration.
France’s strategic gold management, culminating in this €12.8 billion gain, underscores the intersection of financial pragmatism and national control over critical assets. The BdF’s focus now shifts to modernizing the remaining 134 tonnes by 2028, locking in compliance with global standards.
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