Loading...
Loading...
Renewed scrutiny is falling on Germany’s decision to keep about one-third of its gold reserves—around €160 billion—at the Federal Reserve Bank of New York. While the Bundesbank says the holdings enjoy special protections and longstanding custodial safeguards, analysts argue that political risk is rising as US institutional norms and Federal Reserve leadership could change. The debate highlights a broader trend: central banks are reassessing where and how sovereign assets are stored amid geopolitical volatility. At stake are legal certainty, diplomatic leverage, and trust in cross-border custody arrangements that underpin transatlantic financial stability.
The Bank of France said it has withdrawn its remaining gold stored at the Federal Reserve Bank of New York and replaced it with an equivalent amount held in Paris. The repatriated position totaled 129 tonnes, about 5% of France’s 2,437-tonne reserves, ending a practice dating to the late 1920s. Following a 2024 internal audit, the central bank upgraded “older” or “non-standard” bars between July 2025 and January 2026 by selling the US-held bars and buying modern, internationally compliant bullion in Europe, rather than refining and shipping metal. Governor Francois Villeroy de Galhau said the decision was not political. Rising gold prices produced a 13 billion euro ($15 billion) capital gain, contributing to 8.1 billion euros net profit in 2025 after a 7.7 billion euro loss in 2024. The bank aims to standardize another 134 tonnes by 2028.
The Bank of France said it has withdrawn the last 129 tonnes of French gold previously held at the Federal Reserve Bank of New York and replaced it with an equivalent amount of modern-standard bullion stored in Paris. The 129 tonnes represented about 5% of its total holdings. Following a 2024 internal audit, the central bank upgraded the US-held “older” or “non-standard” bars between July 2025 and January 2026 by selling them and buying new bullion in Europe, rather than refining and transporting the same bars. Governor Francois Villeroy de Galhau said the decision was not politically motivated. Rising gold prices produced a 13 billion euro ($15 billion) capital gain, contributing to 2025 net profit of 8.1 billion euros after a 2024 loss of 7.7 billion. Total reserves remain about 2,437 tonnes, now fully held in France.
About one-third of Germany’s gold reserves, worth roughly €160 billion, remain stored at the Federal Reserve Bank of New York, prompting renewed questions about custody and political risk. Bundesbank officials say the holdings receive special protections, but analysts warn that changes in US Federal Reserve leadership or norms could challenge long-standing practices and raise legal or diplomatic disputes. The story underscores wider concerns about transatlantic financial stability, sovereign asset security, and the governance of global economic rules when critical reserves are held abroad. This debate matters for central-bank reserve policy, geopolitical risk management, and trust in international custody arrangements.
About one-third of Germany’s gold reserves, roughly €160 billion worth, are held in vaults at the Federal Reserve Bank of New York. Bundesbank officials say these reserves are specially protected, but experts warn a potential change in US Federal Reserve leadership or shifts in norms could threaten long-standing custody arrangements. The debate raises wider questions about transatlantic financial stability, the security of sovereign assets stored abroad, and how evolving geopolitical or institutional dynamics might reshape global economic rules. The piece summarizes concerns around trust, legal protections, and the implications for international reserve management.