Interest, credit and liquid assets in Cote d'Ivoire

This paper analyses the evolution of demand for bank depositsin Côte d'Ivoire over a period including the CFA Francdevaluation in 1994. Once we have allowed for smooth transitionsin the deterministic component of the demand function, the estimatedrelationship between deposits and income and inflation levelsis congruent with traditional theory; income variability isalso found to play some role. The impact of interest rates israther different from in non-CFA countries, however, owing topeculiarities of the Franc Zone's financial system.