France turns gold reserve swap into $15 billion windfall
Analysts say bringing gold closer to home gives central banks greater control over strategic assets during periods of uncertainty.
France’s central bank booked an estimated €13 billion (over $15 billion) gain by exchanging 129 metric tons of aging gold bars stored in New York for newer bullion kept in Paris, benefiting from record-high gold prices while maintaining the size of its reserves.
The operation forms part of a broader global trend as central banks continue to accumulate gold and bring reserves closer to home.
The World Gold Council’s latest survey showed that 89% of reserve managers expect official gold holdings to grow over the coming year, while a record 45% anticipate increasing their own institutions’ reserves. Inflation, geopolitical tensions and financial uncertainty remain the primary reasons for continued demand.
France’s decision also reflects a wider push to repatriate strategic assets and diversify reserve portfolios away from US-based holdings. As countries increasingly rely on gold as a hedge against financial and geopolitical risks, analysts say the shift could gradually reshape global reserve management while reinforcing gold’s role as a portfolio diversifier for both institutions and individual investors.