Why France has shifted its gold reserves out of US
07 Apr 2026

In a little over six months, France's central bank has sold and brought back its last remaining gold reserves from the Federal Reserve Bank of New York.

The move comes as part of a broader strategy to upgrade reserve quality and comply with modern international gold standards.

The operation generated approximately $14.76 billion in capital gains, significantly boosting France's central bank profits.

Historical context: The original 'Vide-Gousset' operation
Historical context

The current gold movement has drawn parallels with the 1960s 'Bretton Woods' system where US dollar was convertible into gold for foreign central banks.

Back then, France under President Charles de Gaulle was wary of US monetary expansion and secretly repatriated a large chunk of its gold from New York and London between 1963-66.

This operation, dubbed Vide-Gousset (French for emptying the pocket), is believed to have put pressure on 'Bretton Woods' gold convertibility system.

Today's gold movement vs. the 1960s gold standard
Economic impact

Unlike in the 1960s, today's global monetary system is different and the US dollar isn't tied to gold anymore.

This means that gold repatriation isn't a direct repudiation of the dollar or a claim on US gold stocks.

Gold now serves as a store of value, hedge against inflation, and insurance against geopolitical instability rather than being a contractual underpinning of international money.

India has also stepped up repatriation of its gold reserves
Repatriation trend

Germany still holds a considerable amount of gold in New York (about a third of its total reserves). After France's move, the debate about bringing the gold home amid geopolitical uncertainty is growing in Berlin.

Central banks worldwide have been slowly repatriating foreign-held gold for years now.

The Reserve Bank of India has also stepped up the repatriation of its gold reserves back to domestic vaults due to geopolitical risk considerations and a desire to increase domestic accessibility and liquidity.