Both the public and private sides of the financial system in the Ivory Coast developed during colonial days as little more than appendages of the financial system of France. In 1962, after independence, this relationship was essentially unchanged, and the close connection was being nurtured not only by France but also by the Ivory Coast. The fiscal links between the two governments were so complex and appeared to be so informal that the degree of the Ivory Coast's financial dependence on France defied calculation. The Ivory Coast appeared to view the relationship as a beneficial arrangement, which it was free to reappraise, however, should such a course favor its interests.
The official currency in 1962 was the CFA (Communauté Financière Africaine) franc, fully guaranteed by the French at a "pegged" rate of CFA F246.85 to the United States dollar. This currency was shared by most of the former French West African territories and was controlled by a multinational central bank of issue in Paris, with operational accounts in the French treasury. Although the banking system within the country was being reorganized to broaden its international backing, the banks and most of the other sources of credit and investment capital were largely dependent on both public and private French participation. Even the public financial institutions in the Ivory Coast were operating in part on funds obtained from the French Government.
In 1960 the government announced that its fiscal policy would be to keep the country in close touch with realities and to maintain a harmonious balance between resources and expenditures in order to maintain the confidence of citizens and the trust of those whose assistance would be necessary for the country's economic development. The government reaffirmed this policy in 1962 but at the same time maintained no reserve or revenue equalization accounts. Budgets, in conformity with a proviso in the Constitution, were balanced, but only by showing the proceeds of French loans as revenue. The past pattern of budgeting indicated that the government considered the French treasury as a reserve for contingencies.
Since independence the government has followed a course and adopted measures aimed at attracting foreign investment. A liberal investment law, with guarantees protecting the interests of private enterprise and offering preferential treatment to enterprises considered important to the country's economic growth, contributed to