Full Breakdown
France's Central Bank Completes Gold Repatriation, Nets €13 Billion
4/6/2026, 7:45:05 AM
Major Gold Reserve Overhaul
The Banque de France (BdF) has successfully concluded a significant overhaul of its gold reserves, selling the last of its gold held in the United States Federal Reserve and replacing it with higher-quality bars stored in Paris. This strategic move, executed between July 2025 and January 2026, involved 129 tonnes of gold—approximately 5% of France's total reserves—resulting in a capital gain of €12.8 billion. The BdF capitalized on record-high gold prices during this period, completing 26 transactions to maximize returns.
France's total gold reserves now stand at about 2,437 tonnes, making it the fourth-largest gold holder globally, with all reserves now stored in Paris. This repatriation marks the end of any French gold presence in New York, as the BdF has been gradually modernizing its holdings since 2005, moving most of its reserves out of the US Federal Reserve and the Bank of England between 1963 and 1966.
Economic Context and Implications
The BdF's decision to sell its US-held gold was driven by practical considerations rather than political motivations. Governor François Villeroy de Galhau emphasized that purchasing higher-standard gold available on the European market was more efficient than refining and transporting the existing stock. The exceptional capital gains contributed to the bank's net profit of €8.1 billion for 2025, following a net loss of €7.7 billion the previous year.
This successful repatriation may have broader implications for other countries, particularly Germany, which holds approximately 1,236 tonnes of gold at the Federal Reserve—about 37% of its total reserves. Amid concerns over unpredictable US policies under President Donald Trump, some German economists are advocating for the withdrawal of their gold. Michael Jäger, head of the Association of German Taxpayers, expressed that Germany's gold is "no longer safe in the Fed’s vaults."
Criticism & Opposition
While the BdF's actions have been largely viewed as a sound economic decision, the situation in Germany highlights a growing public debate regarding the safety of gold reserves held abroad. Critics argue that the unpredictability of US policies poses risks to foreign-held assets, prompting calls for a reassessment of Germany's gold storage strategy.
Verbatim Quotes
- “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 the Association of German Taxpayers
What's Next
As France completes its gold repatriation, the pressure on Germany to reconsider its own gold reserves may intensify. The Bundesbank has yet to announce any plans to move its gold, but the ongoing public discourse suggests that this issue will remain a focal point in economic discussions moving forward.
