Banque de France Modernizes Gold Reserves, Repatriates to Paris, and Records €12.8 Billion Profit

The Banque de France has completed a significant modernization of its gold reserves by replacing older bars stored in New York with new bars that meet current international standards, now stored in Paris. This strategic move, conducted between July 2025 and January 2026, involved selling 129 tonnes of gold previously held in New York and repurchasing an equivalent quantity in Europe, generating an exceptional profit of €12.8 billion. Of this, €11 billion was booked to the 2025 financial year and €1.8 billion to 2026.

The total volume of gold reserves has remained stable at approximately 2,437 tonnes, making France the holder of the world's fourth-largest gold reserve. The new bars are stored in an ultra-secure underground vault in Paris, known as “Souterraine,” located 27 meters below ground.

Governor François Villeroy de Galhau clarified that the decision was financially motivated by the superior quality of European gold and not by political considerations. An internal 2024 audit had recommended completing this update for the 5% residual gold stock in New York. The Banque de France also continues to hold 134 tonnes of gold in Paris, including older bars and coins that need to be updated to modern standards by 2028.

This operation contributed to the Banque de France’s turnaround from a net loss of €7.7 billion in 2024 to a net profit of €8.1 billion in 2025. Additional factors such as a reduction in the European Central Bank’s key interest rates and an increase in monetary income by €10.2 billion also supported the positive 2025 results. Governor Villeroy de Galhau, who will leave office in June after 11 years, pointed out that with a net position of €283 billion, the bank is well-positioned to withstand potential monetary shocks.