Hidden in the Banque de France’s FY2025 report is a brilliant trade:
Instead of physically shipping its 129 tonnes of gold (approximately 5% of total reserves) from the New York Fed vaults, the bank sold them in New York at peak gold prices, then repurchased the same quantity – but with higher purity – in Europe at lower prices.
The result: total reserves unchanged at 2,437 tonnes, but a net gain of ~€13 billion ($15 billion). All French gold now sits securely in its own underground vault at La Souterraine.
From Loss to Profit: An “Exceptional Item”
In fiscal year 2024, the central bank recorded a net loss of €7.7 billion.
For fiscal year 2025? A net profit of €8.1 billion.
The turning point was this gold operation.
In its March 25 press release, the bank labeled it an exceptional item:
“Income from assets held on own account increased by €12.2 billion, primarily due to an exceptional item. Between 2025 and early 2026, while gold reserves remained unchanged, the remaining 5% holding was aligned with technical guidelines, generating a significant realized currency gain totaling €11 billion for 2025.”
Perfect Timing: Sell High, Buy Low – and Save on Shipping
Execution window: July 2025 – January 2026
- Sell side: New York gold prices hit all-time highs. The bank offloaded older, lower-purity bars for US dollars.
- Buy side: Gold prices retreated in Europe. The bank used those dollars to purchase modern, high-purity bars on European markets.
The round trip yielded €13 billion in capital gains – and since nothing crossed the Atlantic, zero transportation or security costs.
A Clean Sidestep Around Diplomatic Landmines
With US-Europe relations strained over tariffs, Greenland, Ukraine, and Iran, requesting a physical gold repatriation – as Germany famously did – would have triggered a diplomatic row.
The Banque de France chose a purely market-based solution:
No withdrawal request. No transfer demand. No political noise. Simply sell, then repurchase.
Governor François Villeroy de Galhau told reporters that keeping the new bars in Paris was not politically motivated.
A Dramatically Stronger Balance Sheet
The operation supercharged the bank’s financial position:
| Metric | 2024 | 2025 |
| Equity (including unrealized gains) | €202.7 billion | €283.4 billion |
| Of which: gold & forex revaluation reserve (RRRODE) | – | €11.4 billion |
The €11.4 billion reserve will be used to cover future monetary expenses.
Bottom Line
No diplomatic drama, no transatlantic shipment – just a smart pair of trades that moved French gold from New York to Paris and pocketed €13 billion in the process.
This is financial alchemy at its finest.