Bank of France Books €13B Gain After Selling US-Held Gold Reserves
France’s central bank has recorded a nearly €13 billion gain after restructuring gold reserves previously held in the United States, drawing attention to how nations manage strategic assets.
The move is being widely framed as France “pulling gold out of the U.S.,” raising questions about whether it signals a shift in financial trust or simply a technical adjustment.
According to Reuters, the Banque de France sold roughly 129 metric tons of gold stored in New York between July 2025 and January 2026, then replaced it with higher-standard bullion held in Paris. The total volume of reserves remained unchanged at about 2,437 tons.
What complicates the narrative is that no physical transfer was required. Instead, the bank executed a market swap—selling older bars and purchasing compliant ones—while benefiting from elevated global gold prices.
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Governor François Villeroy de Galhau said the decision was “not politically motivated,” pointing to market liquidity and trading standards.
The timing proved critical. The operation generated about €12.8 billion in capital gains, helping the central bank swing from a €7.7 billion loss in 2024 to a profit exceeding €8 billion in 2025.
The development highlights a broader pattern among central banks, which are increasingly focused not just on how much gold they hold, but where it is stored and how easily it can be traded.
France is expected to continue upgrading another 134 tons of older gold holdings by 2028, suggesting the strategy is ongoing.
The shift may be technical, but it is likely to keep fueling debate about control over national reserves.
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