France pulls last gold held in US for $15B gain

12 hours ago (mining.com)

>However, an operation to repatriate its gold holdings began in the 1960s leading up to the US termination of the Bretton Woods system, which effectively stopped foreign governments from exchanging dollars for gold.

French-US monetary history after WWII:

Under the Bretton Woods agreement (1944-1971), the US dollar was the world’s reserve currency, and it was pegged to gold at $35 per ounce. Other countries pegged their currencies to the dollar.

around 1965, De Gaulle initiated a systematic, aggressive policy where they converted USD into physical gold every time French acquired USD from trade, then French Navy picked those gold bullions from NY. By 1971, the US gold reserves had decreased so much that they did not cover the dollars circulating globally and Nixon "closed the gold window,"

  • You seem to imply that Charles de Gaulle and his policy of converting dollars to gold caused the collapse of the Bretton Woods system. That was a myopic view. The whole Bretton Woods system was doomed from the beginning due to design defects.

    The system was conceived with the primary goal of maintaining balance of payments equilibrium for all countries at the expense of economic growth and liquidity. It had become clear that if a country wanted its currency to be the world reserve currency it had to run a balance of payment deficit. And the United States clearly wanted its dollar to be the reserve currency unbridled by any balance of payment constraints.

    If the United States had balance of payment surpluses as it had in the early years, the system lost liquidity (other countries wanted to buy U.S. exports but had neither gold nor dollars to do so), reducing the surplus. And if the United States had balance of payment deficits, well, gold would flow out of the United States, and the United States could not meaningfully increase public debt or spending.

    • Ok, bear with me for a moment - what if the US would use actual physical gold coins instead of dollars? Then your argument of "gold would flow out" would not hold - so the only reason for it to flow out was that the gold standard was fake - the lax money policy of the US was the issue, not the gold standard itself.

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    • All the facts are true here, but "design defect" is silly. The entire purpose was to keep a country like the US from exploiting its position, and becoming the "world's reserve currency" which is just a euphemism for running up massive debts to poorer states.

      Bretton Woods was sabotaged by the US and the USSR through the single vehicle of https://en.wikipedia.org/wiki/Harry_Dexter_White. Without a Bancor, the entire system simply became a mechanism to exploit the poor.

    • I agree with you that Bretton Woods was doomed from the beginning, both Keynes and Friedman said so, and this should be a better known POV. Economists are not historians though, and historians write human-driven stories (i.e., it was Nixon who ended Bretton Woods, it's not that it was going to inevitably collapse as an econometric question).

      All that said, Bretton Woods matters because people look at the gold standard as a time when wages in the United States rose. Like that's why Bernie Bros on HN care. It's the same reason they oppose globalization: me me me. So it's worth knowing why it was flawed. They don't comprehend that before and after Bretton Woods, hourly wage charts measured a fundamentally different thing.

      I think it's better to attack the charts - I mean, you're responding to a Charts Guy, a guy who's like, look at this Gold Denominated Chart guy - because that's what their brains work on. Don't worry about economics. These guys are not economists. They are Charts. The real attack on their worldview is that, well, just because the year in the X axis is an increasing, doesn't mean that you can compare a bigger year to a smaller year. They would really like the world to be ordered that way, but it's not, and taking leadership on convincing them of that is very hard.

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  • > trade, then French Navy picked those gold bullions from NY

    I couldn’t find any clear news source or academic reference to that event. I see a lot of references on gold buying/selling sites mostly. I would imagine a Fench Navy ship docked NY and loading tons of gold would make quite a stir.

  • Excessive debt build up in particular due to the Vietnam war caused the US to cancel the dollar gold convertibility.

  • > De Gaulle initiated a systematic, aggressive policy where they converted USD into physical gold

    The dude was a visionary for many things, but I didn't know about this. Borderline prescient. What a guy.

    • Just like the majority of the classical economists and policymakers, you would call him a blithering idiot and overzealous nationalist two decades ago. It was thought that this kind of behavior caused world-wars. I mean it did cause them. It is just we're speed running the next one that changed the narrative.

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  • De Gaulle was ahead of his time. He was very skeptical of the control that the US had over Europe through NATO. He left the alliance to build an independent French nuclear program which is paying dividends today amid the current leadership situation in the US.

This is not gain at all. At least in theory: You own some tons of gold at the start of the process, you have the same tons of gold at the end of the process.

The only real gain is that you have gold in the US custody and the US can be tempted to just use it without telling you anything.

In other words, you had "paper gold" or "virtual gold" that the US can confiscate anytime, for example after invading Greenland, blackmailing France to do nothing.

You gain custody of what is yours.

  • From the full press release:

    "In 2025 and at the start of 2026, while the volume of gold reserves remained unchanged, the Banque de France had to align a residual portion (5%) with technical guidelines, resulting in a significant realised currency gain. This exceptional foreign exchange income totalled EUR 11 billion for 2025."

    -- the keyword here likely being "realized"

  • Assets like this are one of the complexities in calculating national import and export figures.

    For example, imagine there's some German-owned gold in a UK bank vault, the owners sell it to a UK broker who sells it to a Chinese investor? The physical bars don't move, but on paper it's been imported to the UK then exported.

    But a lot of people looking at export figures are expecting to learn things about the manufacturing industry, and picturing exports as washing machines, cars and computer chips - which imply lots of well paid jobs for skilled labour. So the UK reports import/export figures with 'non-monetary gold' listed separately.

    (The fact flows of gold are highly volatile allows a classic bit of political sleight-of-hand - if you include gold, UK exports are both up and down since Brexit, depending on the pair of dates you choose)

  • > The only real gain is that you have gold in the US custody and the US can be tempted to just use it without telling you anything.

    What if you're at war, you can't risk to get your gold out and the US doesn't sell you anything because.. you can't pay?

    If your solution is to "write France's debt on a piece of paper and hope they honor it", I've got some news to tell you about the system you just "invented."

  • The concept of "paper" assets isn't specifically about whether you hold physical custody of the asset, its whether the asset exists at all.

    If the US holds 100 tons of gold on behalf of another country and possesses that full amount, it isn't paper gold.

    Derivatives are where paper assets come into play. You buy the right to own 100 tons, for example, and whoever owes you that either owns only a fraction of their total liability or plans to buy it when delivery is requested. That's an over simplification of a much more complex market, but the key is that "paper gold" owed doesn't exist in the full amount.

  • It's probably just a technical accounting update. Old assets are often kept valued at their buy price and not reevaluated every year to avoid taxes (Banque de France is not exempt from taxes). As they swap a type of gold by another and do a sell/buy action, the new gold is valued to current market price while the old one was valued in accounting at an old value.

    They had a deficit last year, so they can probably avoid to pay tax this year by balancing last year loss with this year profit.

  • As @somenameforme wrote:

    [] they sold their 'non-standard' (seems to be bars below the modern purity standards) US reserves, and replaced them with new reserves purchased elsewhere which are now stored in France. As the price of gold continued to rise as they did this, they ended up making a bunch of dinero while also centralizing their reserves.

    sounds like a gain to me.

    • A gain of $15b? That's roughly the value of 100 metric tons of gold, remarkably close to the 129 tons that the article says was moved... did they double the value of their gold?

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  • > This is not gain at all. At least in theory: You own some tons of gold at the start of the process, you have the same tons of gold at the end of the process.

    I see a lot of comments like this but I just can't get my head around what you are trying to prove (or disprove).

    Every definition of gain (or loss for that matter) implies that the same amount of _something_ is now worth more (or less) than when you bought it.

    Following you logic, if I buy a share of MSFT at $10, sell it for $100, there is no gain because I still have 1 share of MSFT?

  • Paper/virtual gold perhaps bought ages ago at a far lower price point, now turned into real, solid gold in parity with today's price point. To me this sounds like the implied gain.

    • If it were that simple, the gain would be much more. Gold sold at $35/troy ounce then; over $4000 now.

      EDIT: Wow, gold prices!

  • which can be the difference between losing that entire amount or gaining it, and in this situation with this America, this is a big win if they manage to get it back in fact, if it hasn't been stolen or sold already

  • > This is not gain at all. At least in theory: You own some tons of gold at the start of the process, you have the same tons of gold at the end of the process.

    Correct. A better way to put it is you shorted the USD. Which is a smart move at any rate. So a gain indeed.

  • It's more of a loss for the USA, which IMO is the unwritten point of the article.

    France upgraded their gold bars to a new standard and as they were doing that, gold has appreciated massively in price, so France has the new shiny easier to trade bars, and the USA has the old harder to trade bars.

    • They can be melted and brought to the modern standard, which is what they did with the rest of their holdings on the old continent. They sold these only because it was cheaper than transporting it.

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This article is poorly written. No new wealth was created.

They monetized an existing accounting/revaluation gain by selling older, non-standard bars and replacing them with compliant bars, while keeping the overall gold quantity unchanged. That is not the same as "we moved gold home and earned $15B on the move."

In simple terms:

- You buy x of gold at $10

- You sell it much later for $100

- You made a profit of $90, and you hold $100 of cash

- You rebuy x of gold for $100, back to the same gold exposure, but on the books, you have $90 of profit

  • I don't get your point. Gold price increased, the gains were unrealized, now they realized when they rolled to a new position. The only nitpick would be that they did not mention the benchmark rate, so it's hard to guess the absolute gain.

    What is poorly written or misleading here...?

    That just looks like a normal capital gain to me.

    • The article even says exactly that:

      "Due to rising gold prices, the move helped the bank to generate a capital gain of 13 billion euros ($15 billion), bringing it to a net profit of 8.1 billion euros for the 2025 financial year after a net loss of 7.7 billion euros in 2024."

      I would have thought the audience here would understand something as straight forward as a capital gain.

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    • Capital gain and losses are when you need to pay taxes. If you sold 100K of SPY that you bought for 10K actually, and bought it back (It is a gain so there is no wash sale) immediately, you need to pay taxes for $90K. This is just an exchange based on the comments I am reading.

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    • What is the benefit of realizing the gains for France? They had gold, they still have gold. They don't pay tax on their gold or gains.

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    • I think the GP was saying that there was no gain. France has the same amount of gold they did last week. The whole article is like saying "holy shit, france has the exact same amount of wealth they did last week!"

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Is anyone here actually reading the article? Yes, they really made a gain of $15B:

> But instead of refining and transporting the gold, it opted to sell the bars and purchase new bullion in Europe. […] Due to rising gold prices, the move helped the bank to generate a capital gain of 13 billion euros ($15 billion),

  • This doesn't make sense. If they first sold the bars held in the US, then the gold prices rose, then they bought gold in Europe, how the hell did that amount to a capital gain of $15b? How exactly do prices rising over the course of the process lead to these $15b?

    • Imagine they bought the gold in the US for 1b and sold for 16b. Yes they turned around and purchased 16b of order gold immediately but there's was still a transaction where they sold an asset for more than they bought it.

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    • First thought: Maybe they bought the gold first? Or the gold price was at a temporary high when they sold it?

      Second thought: The numbers don't seem to check out: 129t are 4,147,456.307 troy ounces (1 troy ounce = 31.1034768 g). The total gains of 15e9 USD would thus correspond to gains of $3,616.68 per troy ounce, which seems excessively high, given that today's gold price is at ~$4,712. Even if they sold everything at the current all-time high of $5,589.38 on January 28 (and that's a big if), they would have had to buy for not more than $1,972.70, a price we last had in fall 2023.

      They must have had an exceptional crystal ball!

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  • The US gold would have been on the books at the original purchase price, so something like US$35 from 1910 (when a penny had a purchasing power of 38 cents now). Having deemed it more efficient to sell that gold and buy the same amount to replace it, the new gold is on the books at the 2026 purchase price. As the 2026 money price is far higher than the 1910 price, the value on the books shows a dramatic realized capital gain.

    No gain would have shown for the gold that was simply moved, even though in this case the buying and selling was simply a more efficient way of doing the equivalent of moving the gold.

    Gold that was simply moved wouldn't show the same gain.

    • That makes more sense, thank you! Though do gold assets on the books really never get adjusted? I guess that's up the central bank to decide but I would find it surprising.

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  • You sell in country A and buy the *same quantity* in country B. You were just lucky that the gold you bought a century ago was rocketing to Mars.

  • I think the confusion is that both statements can be true depending on what you mean by "gain"

Good for France to relocate gold back to their own territory, but, uh, how can this result in a 15 B gain?

"The overall size of France’s gold reserves still remained unchanged at roughly 2,437 tonnes, which are now entirely held at the BdF’s underground vault in La Souterraine."

Is this some special form of French accounting, where the gold becomes more valuable when it returns to French soil?

  • Over about a year they sold their 'non-standard' (seems to be bars below the modern purity standards) US reserves, and replaced them with new reserves purchased elsewhere which are now stored in France. As the price of gold continued to rise as they did this, they ended up making a bunch of dinero while also centralizing their reserves.

    • The French gold originally deposited by France in US reserves in the 1950s was of the exact same purity as the French gold now, what is meant by "non-standard" just means "not stored in France".

      If it was a lower purity, then when they sold the 129 tons, they would not have obtained 129 tons of "higher purity" gold and still turned a profit. They would have gotten fewer tons of gold. Your logic has the wrong sign.

      Also, the fact that gold prices are rising means when France sold the gold and then purchased it later, the higher price to obtain the same quantity of gold would mean they incurred a loss, not a profit. Here, too, your sign is wrong.

      Finally, at current prices, 129 tons of gold is worth $19 Billion dollars in total. It seems hard to believe that short term price declines (which is what is needed to turn a profit) would be such that gold fell over 80% in value, which is what would be needed to sell 129 tons of gold, then wait a while and buy 129 tons of gold, and end up with a profit equal to over 80% of the price of gold in question.

      Moreover, rising gold prices would cause the French to earn a loss, not a profit

    • > As the price of gold continued to rise as they did this,

      Seems counterintuitive to me. This would only make gains when they bought the new gold before selling the old, or when there's some arbitrage going on between Gold/USD, Gold/EUR and USD/EUR.

      If they first sold the old for USD, then bought the new for USD, with a rising gold price, they'd miss the price-gain during the time between the trades, when they held the USD. It'd be a loss, not a gain.

      If there's some arbitrage going on, then I highly doubt that brings $15B gain. The differences would have to be huge.

      I think the (author (AI)) writing that article is simply mixing up stuff. I think this gain is not a cause-effect of the conversion, merely the gains from rising gold prices on the gold it holds over that period.

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  • They sold the existing holdings and bought new of equivalent weight(?), so somehow they ended on profit on those moves.

    • The profit is just realizing the gains (resetting the cost basis for accounting purpose).

  • It’s a paper gain created by mark to book accounting treatment of central bank goal reserves. Not a real economic gain.

    The US could re-create the same “gain” by selling and repurchasing their gold. Fundamentally doesn’t really matter.

  • My guess is they buy before selling. An increasing market with a large buy might increase enough to allow for a profitable sell.

    On top of this, this is physical gold, so location of the gold must play into it as well.

Germany also needs to pull all gold. We have 1236t there.

  • Would be good to not depend on the US that much any longer, since they have proven to be such an unreliable "partner". Even in a non-Trump future one cannot rely upon some future election not resulting in some similar disaster. Better to pull out, before some hothead gets weird ideas about that gold.

    • Maybe the fact that US soldiers and military bases exist inside Germany's borders is slightly more important than where the gold is. First regain your sovereignty, I'd say.

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  • > Germany also needs to pull all gold. We have 1236t there.

    They had better act fast, before an executive order prevents that from ever happening.

  • There was that whole spiel of Elon and Trump going to Fort Knox to see if the gold was still there, What ever happened to that?

    • I’m pretty sure Trump thought or heard mention of Minchin (first Trump Treasury Secretary) visit to Fort Knox in 2017 recent to that comment and just blurted out the first thing that came to his mind - like most of his off the cuff remarks, it doesn’t make any sense on close examination but appeals to MAGA supporters.

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Not your keys, not your coins.

  • This doesn't make much sense as you would use something like this to keep your keys safe.

    • It's a trust issue. And trust and competence are inextricably linked.

      Most of us with career-track jobs use electronic deposit to an account at a bank, and keep things there. The account is "yours", and the trust is established over time--most people using most banks continue having access to their deposit of record most of the time. When that fails, you get a bank run--which is systemically undesirable, but also ends with people not having "their" money. They thought it was theirs, but it turned out not to be.

      If your bank started publishing poorly-written notices about how they'd terminate accounts and retain holdings for certain customers based on arbitrary behavior, and kept changing that definition, would you leave "your" money there--even if the only alternative were to purchase precious metals and lock them up yourself?

> 2. Improvement in income from non-monetary activities

> Net income from assets denominated in euro rose by EUR 2 billion, driven by an increase in outstandings. Income from assets held for own account rose by EUR 12.2 billion as a result of an exceptional item. In 2025 and at the start of 2026, while the volume of gold reserves remained unchanged, the Banque de France had to align a residual portion (5%) with technical guidelines, resulting in a significant realised currency gain. This exceptional foreign exchange income totalled EUR 11 billion for 2025.

> Net operating expenditure remained under control, falling to EUR 831 million from EUR 888 million in 2024. Since 2015, net operating expenditure has fallen by an average of 4.1% in volume terms.

> Overall, after transferring EUR 5 billion from reserves and booking a corporation tax charge of EUR 1.5 billion, net profit for 2025 totalled EUR 8.1 billion.

> A total of EUR 0.4 billion of this amount has been allocated to the special reserve, in accordance with regulations, while the remainder has been used to clear the deficit in retained earnings (EUR 7.7 billion) that was left after the allocation of the net loss in 2024

> After clearing these past losses in their entirety, the Banque de France’s net equity – comprised of own funds plus unrealised capital gains on asset holdings – is now extremely solid at EUR 283.4 billion, up from EUR 202.7 billion in 2024. The Banque de France’s net equity includes a revaluation reserve of state gold and foreign exchange reserves (RRRODE) of EUR 11.4 billion, to cover future monetary expenses

I assume that this increased equity makes selling bonds a bit easier?

From: “Net profit of EUR 8.1 billion, enabling the clearing of losses carried forward” https://www.banque-france.fr/en/press-release/net-profit-eur...

I doubt the claim, honestly. Such an institution would never buy and sell to trade the market, they probably never stopped being exposed to gold by buying and selling simultaneously and the 15b is the realized gain of the sold gold, which is only in paper as they still hold the gold.

  • > Such an institution would never buy and sell to trade the market

    This is not what they're doing.

    They're just re-asserting their sovereignty over their property, a smart move in the current geopolitical climate.

    I'm actually surprised the utter dumbass they have at the helm over there managed to cook up such a smart move.

Feels like one of those stories where the headline makes it sound geopolitical, but the details are mostly about accounting and logistics

  • Yes and no. Even though the use of USD as reserve has been falling globally over time, there are a lot of news articles showing up on this site lately about divestment in USD.

    So on the surface level this is politics in the sense that it marks the end of a long process between two countries.

    Deeper, it is very political in that some entity wants to normalize and for us to be thinking a lot about the future of American isolationism.

At least they got their gold this time.

The last time they asked for their gold back Nixon "temporarily" ended the convertibility of the USD to gold.

  • It’s exactly the opposite. Last time France was trying to exchange USD to gold. This time France was selling gold presumably exchanging gold to USD in New York.

lol at all the finance folks

This isn’t reddit. This is a technical forum. We talk about cool tech stuff.

The funny thing about this is that since 1945, France keeps and uses the majority of the gold reserves of 14 former French colonies in West and Central Africa and uses that power to make them use the CFA Franc, a currency pegged formerly to the French Franc but now of course to the Euro [1].

It's worth noting that the stated reason here isn't because of, say, US instability but rather "standardizing" the gold. It doesn't say what that means but I assume France is basically selling some New York held nonstandard gold to "standard" gold held in France. "Standard" here probably means a given size and purity. Yes, there are different purity levels to gold. So think the heavy bullion bars you see on movies.

[1]: https://www.brookings.edu/articles/how-the-france-backed-afr...

Not done for political reasons.

  • Of course not . absolutely definitely nothing to do with the mad king (who is great and handsome)

  • And winning athletes and sports teams don't go to the white house due to 'scheduling conflicts'. And Amazon paid $75m for a Melania documentary because they saw real profit and need there. And Qatar bought Trump an airplane because it was important for his work. And everyone nominates him for a nobel prize because he ends wars and doesn't get into wars (we're just in a special military operation atm).

  • Would it count as a "political reason" if their risk management calculations crossed a threshold where it's worth it to move the gold back? I imagine such calculations are done and revised all the time and account for the perceived stability and reliability of a country.

  • Are you suggesting they did this for technical or economic reasons? Like what? Is the US charging an unreasonable storage fee?

    I'd read the article, but the site seems to be down.

    • If you search Google for "France sells US gold for 13b euro gain" you'll find lots of results. The reasons provided across the various articles are:

      1. The bars were of an old variety and therefore not standard tradable.

      2. Transporting them, refining them, and recasting exceed the cost of selling kind #1 and obtaining kind #2

      Here's one such link though it appears there's some primary source everyone is rewriting: https://www.rfi.fr/en/france/20260404-french-central-bank-ne...

      It appears that the gain mentioned is a realization of their asset value. I would also speculate that what happened is that they wanted LBMA bars because those are a standard variety and therefore easily tradable. An arbitrary LBMA bar is generally fungible. I would also speculate that they held many bars in the US from ancient times. After 2008, they repatriated 200-ish tonnes and 'upgraded' them (which I would speculate again is 'ensured they were LBMA-standard').

      https://www.moneymetals.com/news/2024/10/05/why-france-repat...

      These articles all have the flavour of the game of telephone common in this style of article where the currency that the gain is in changes wording, the motivation seems to shift, and phrasing lacks real detail instead relying on 'upgrading' and 'refining'.

      I wish there were a good LLM agent that were capable of tracing all this back to the real original source that spawned all these things, but the information environment is currently full of smoke and getting real news is quite hard.

      I can't realistically conclude whether this was politically motivated or not. The original motivation is sufficiently strong on its own, but it is completely normal for governments to move something to be earlier, or to do a marginal thing if there is other gain.

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$15 B gains... Just to put things in perspective: France has a GDP of about 3.5 trillion USD and a public debt of 117% of that amount. $15 B is not even a drop in the bucket.

To add to France's problem: in 2024 the PIB growth was 1.2%, which doesn't even counter inflation. And it's been like that since 2008: inflation adjusted in USD, no growth (while both the US and China's GDP inflation-adjusted skyrocketed).

The EU, and the eurozone in particular, is totally losing the plot: 1 company in the top 50 companies by market cap, ASML (and it's not french).

One.

Charles de Gaulle was such an incredible man, nearly 60 years after his death he still keeps influencing the direction of France (for the better)

Considering how Project2025 declared Europeans as enemy, it really is time to focus on more reliable partners than the current (and most likely future) USA version. Trump is a war-president - when he babbles about what Project2025 tells him to say, he stumbles over his own lies increasingly so, most likely because his brain no longer works that well. The recent "we can not extend health care and social care because we must wage wars" was kind of a slip-up of the real agenda - not that this is a real secret either, but even folks who voted for Trump thinking he cares about him (as if billionaires care about other people ever), should now realise the path the USA has decided to walk. ICE shooting down US citizens also show this - you protest, you get shot.

  • It has more to do with Putin than any of that. Trump says he and Putin “went through a hell of a lot” together. Values inverted at last year’s Munich security conference, and the US advised Europe to just lay back and take it. Then, Greenland.