France Brings Home Its Last Gold From the U.S.

The Bank of France has completed the removal of the last of its gold bullion from the Federal Reserve Bank of New York, according to a press release issued last week.

• As a result, the central bank’s total gold holdings—unchanged at 2,437 metric tons—are now all stored domestically near Paris rather than partially in New York.

Billion-dollar strategy: Instead of shipping the heavy gold bars across the Atlantic Ocean, the bank sold about 129 metric tons in the United States between July 2025 and January 2026, when gold prices were at an all-time high. The bank used the revenue to buy the same amount of newer bars in Europe, resulting in a one-time profit of about $15 billion.

• The Bank of France has been replacing its older gold bars with newer ones that meet international standards for the past 20 years. This transaction was the final step.

Some wonder if the timing means France is worried about world events, such as possible trouble in the Strait of Hormuz that could affect the U.S. dollar’s role in the oil trade.

• The Bank of France says this was a preplanned business decision recommended by an internal audit in 2024. Yet given the fact that experts at Deutsche Bank and elsewhere say the conflict in Iran could accelerate the decline of the U.S. petrodollar, the Bank of France is probably happy to have its gold safely stored near Paris in case it needs it.

History: During the 1930s and especially World War ii, many European countries moved gold to the United States to protect it from Nazi invasion or wartime looting.

• Today, the full repatriation to domestic vaults reflects a changing world order in which trust in foreign custodians, even long-standing allies, appears to be waning.

Former Polish Finance Minister Konrad Raczkowski noted in 2024 that the European Central Bank may eventually expect eurozone nations to hold gold reserves equivalent to about 4 percent of gross domestic product. France’s holdings far exceed that benchmark (13 to 14 percent in relative terms), giving it a strong position should the global reserve currency system undergo significant change.