France's central bank has fully consolidated its gold reserves domestically for the first time in decades. The Banque de France sold the last 129 tonnes of non-standard gold bars stored at the Federal Reserve Bank of New York between July 2025 and January 2026, then repurchased an equivalent amount of high-quality bullion on the European market.

This operation left France's total gold holdings unchanged at 2,437 tonnes, all now secured in the bank's underground vault known as La Souterraine, located beneath its Paris headquarters. The move generated an exceptional capital gain of €12.8 billion ($15 billion), with €11 billion booked in 2025 and the remainder in 2026, helping the bank report a net profit of €8.1 billion for 2025 after a €7.7 billion loss the prior year.

The decision stemmed from a long-term effort to upgrade France's reserves to meet modern international standards for liquidity and tradability. Since 2005, the Banque de France has progressively replaced older bars. The remaining 5% in New York consisted of non-compliant bullion that would have required costly refining and transport. Selling at peak prices amid surging gold values proved more efficient.

France now holds the world's fourth-largest official gold reserves, behind the United States, Germany, and Italy. This full repatriation echoes actions taken under President Charles de Gaulle in the 1960s, when France withdrew most of its gold—over 3,000 tonnes—from U.S. and U.K. vaults amid concerns over dollar convertibility. A small portion lingered until this recent completion.

Banque de France Governor François Villeroy de Galhau emphasized the move was technical, not political, aimed at optimizing reserve management without counterparty risk. The bank's 2025 results, published April 9, confirmed the reserves' stability and the profit's allocation to French citizens via strengthened equity of €283 billion.

The operation reflects a broader European trend. Germany completed its repatriation in 2017, while nations like the Netherlands and Austria have also brought gold home in recent years. High gold prices, driven by geopolitical tensions and inflation hedges, amplified the financial upside.

With all reserves now under direct French custody, the Banque de France enhances its balance sheet resilience and operational flexibility in global markets.