Between 2013 and 2016, the French central bank is said to have discreetly repatriated the last 221 tonnes of monetary gold stored abroad to Paris, bringing to 2435 tonnes the stock of gold kept in La Souterraine, the French central bank's vault. And for good reason: the yellow metal has confirmed its status as a safe haven during the recent crises that have shaken the world economy. Focus on the reasons that led France to repatriate its gold to Paris.

Gold: a metal whose role in finance has changed in recent years

For a very long time, the French central bank kept part of its gold in foreign banks, particularly in the United States, the United Kingdom and certain African countries. Moreover, before 2008, states did not hesitate to liquidate their stock, as was the case in 2004, when Nicolas Sarkozy sold 500 to 600 tonnes of gold when he was Minister of the Economy.

However, since 2008, the role and place of gold in international finance and politics have changed considerably. Indeed, the yellow metal has confirmed its status as a safe-haven asset, and governments and other central banks have become buyers again.

The following crises (the Greek crisis in 2009, then the Portuguese crisis in 2010) and finally the coronavirus crisis of the years 2020-2022 have confirmed this status.

Securing gold within its borders

The French central bank is not alone in following this new trend. Many states have repatriated their gold reserves and are purchasing the precious metal. Some central banks have even been buying up to 400 tonnes of gold per year since 2008.

In fact, this trend is explained by the fact that states want to secure their gold within their borders. Let us not forget that for a long time gold was the basis of the global financial system (the so-called gold parity or gold standard). The metal continues to be synonymous with financial stability for many countries.

Moreover, France was not the first country to repatriate its reserves. Before it, the German central bank repatriated its gold placed in France and the United States.

Objective: to become a world gold centre again

Another reason for this decision is the desire of the Bank of France to make the French capital a major gold centre, thus competing with London and New York.

The repatriation of gold stocks placed abroad would thus ensure that this gold could be used at any time on the wholesale market.

Today, the economic crisis linked to the coronavirus only confirms the decision of the Banque de France to repatriate the last tons of gold to Paris.