Hidden in the Banque de France’s FY2025 report is a brilliant trade:<\/p>\n
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 \u2013 but with higher purity \u2013 in Europe at lower prices.<\/p>\n
The result: total reserves unchanged at 2,437 tonnes, but a net gain of ~\u20ac13 billion ($15 billion). All French gold now sits securely in its own underground vault at La Souterraine. <\/p>\n
From Loss to Profit: An “Exceptional Item”<\/strong><\/p>\n In fiscal year 2024, the central bank recorded a net loss of \u20ac7.7 billion. The turning point was this gold operation.<\/p>\n In its March 25 press release, the bank labeled it an exceptional item:<\/p>\n “Income from assets held on own account increased by \u20ac12.2 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 \u20ac11 billion for 2025.”<\/em><\/p>\n Perfect Timing: Sell High, Buy Low \u2013 and Save on Shipping<\/strong><\/p>\n Execution window: July 2025 \u2013 January 2026<\/p>\n The round trip yielded \u20ac13 billion in capital gains \u2013 and since nothing crossed the Atlantic, zero transportation or security costs.<\/p>\n A Clean Sidestep Around Diplomatic Landmines<\/strong><\/p>\n With US-Europe relations strained over tariffs, Greenland, Ukraine, and Iran, requesting a physical gold repatriation \u2013 as Germany famously did \u2013 would have triggered a diplomatic row.<\/p>\n The Banque de France chose a purely market-based solution:<\/p>\n No withdrawal request. No transfer demand. No political noise. Simply sell, then repurchase. <\/p>\n Governor Fran\u00e7ois Villeroy de Galhau told reporters that keeping the new bars in Paris was not politically motivated.<\/p>\n A Dramatically Stronger Balance Sheet<\/strong><\/p>\n The operation supercharged the bank’s financial position:<\/p>\n The \u20ac11.4 billion reserve will be used to cover future monetary expenses.<\/p>\n Bottom Line<\/strong><\/p>\n No diplomatic drama, no transatlantic shipment \u2013 just a smart pair of trades that moved French gold from New York to Paris and pocketed \u20ac13 billion in the process.<\/p>\n This is financial alchemy at its finest.<\/p>\n
\nFor fiscal year 2025? A net profit of \u20ac8.1 billion. <\/p>\n\n
\n\n
\n \nMetric<\/td>\n 2024<\/td>\n 2025<\/td>\n<\/tr>\n<\/thead>\n \n Equity (including unrealized gains)<\/td>\n \u20ac202.7 billion<\/td>\n \u20ac283.4 billion<\/strong><\/td>\n<\/tr>\n \n Of which: gold & forex revaluation reserve (RRRODE)<\/td>\n \u2013<\/td>\n \u20ac11.4 billion<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n