The central bank of France has quietly brought its gold reserves back home, and it turned out to be a big financial win for France. Reportedly, France has earned €12.8 billion in this process. But how? Let’s understand.
Instead of physically transporting gold from the United States, France took a different approach. Between July 2025 and January 2026, it sold 129 tonnes of older, non-standard gold bars that had been stored in New York, taking advantage of record-high gold prices at the time, as per a report. It then used the proceeds to purchase higher-standard bullion on the European market and stored it in Paris.
Under the recommendation of a 2024 internal audit, the bank went ahead to replace the US-held gold between July 2025 and January 2026. But instead of refining and transporting the gold, it opted to sell the bars and purchase new bullion in Europe.
This strategy allowed the bank to avoid the complexity of refining and transporting gold across continents. At the same time, it ensured that its reserves met modern international standards more efficiently. The move was part of a broader modernization effort that has been underway since 2005, as per an Analytics Insight report.
In total, the transactions generated €12.8 billion, contributing significantly to the bank’s financial turnaround. The Banque de France (Central Bank of France) 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 the Analytics Insight report.
With this step, France now holds its entire gold reserve, about 2,437 tonnes, in Paris. The 129 tonnes involved in the latest operation accounted for roughly 5% of the country’s total holdings and were completed through 26 separate transactions.
France still holds around 134 tonnes of older bars and coins in Paris, which it plans to upgrade by 2028 to ensure all reserves meet the same standards.
France has the fourth largest gold reserves in the world after the United States, Germany and Italy (the fifth largest if the reserves of the International Monetary Fund (IMF) are included). Under French law, the Banque de France is responsible for the safe custody and management of these reserves (Article L. 141-2 of the Monetary and Financial Code). It mainly stores them in an ultra-secure vault known as the Souterraine, which is located 27 metres below ground and won the International Underground Architecture award in 1940.
