The French have deposited on their Livret A 2.33 billion euros more than they withdrew in April, according to figures published Tuesday by the Caisse des dépôts et consignations, a high level but much less than in previous months. Net inflows, the difference between deposits and withdrawals, were $4.17 billion in March, $6.27 billion in February and $9.27 billion in January.
These very high levels were explained by the rise in the interest rate, set at 3% in February, and which pushed the French to transfer part of their money that was sleeping in their current accounts to their Livret A. April 2023 inflows remain higher than the April 1 $87.2022 billion.
Its cousin, the Livret de développement durable et solidaire (LDDS), also remunerated at 3%, recorded a net inflow of 1.15 billion euros last month, against 420 million in April 2022. Cumulatively, net inflows amounted to €3.48 billion in April, and €28.86 billion over the first four months of the year.
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For comparison, the Livret A and the LDDS had garnered 33.49 billion euros over the whole of 2022, the third best year after the 35.21 billion of 2020, a vintage marked by the pandemic, and the record of 2012 (49.16 billion) due to the increase in the ceiling.
It remains to be seen whether this relative normalization will continue, while the rate of the Livret A should increase again on August 1, if the calculation formula is applied. If the rate can theoretically go up to 4% or 4.5%, Eric Lombard, the director general of the Caisse des Dépôts has indicated his wish that it remains at 3%. The decision will nevertheless be up to the governor of the Bank of France, François Villeroy de Galhau, and the Minister of the Economy Bruno Le Maire, who will have to give his approval.
Managed jointly by the Caisse des Dépôts and the banking networks, the Livret A is mainly used to finance social housing, while the LDDS is dedicated to the social and solidarity economy as well as energy savings in housing. The outstanding amount of the two booklets reached 538.6 billion euros at the end of April, an increase of 10% over one year.