Third quarter figures for 2001 from the Bermuda Monetary Authority (BMA) indicate there was close to $100 million more Bermuda dollars in circulation over the previous quarter.

The report, released yesterday, records there being $2.6 billion in circulation and on deposit in the Island's financial institutions compared to $2.5 billion during the second quarter of 2001.

Of that $76 million, which is constant with the amounts recorded during the first two quarters of 2001, is notes and coins in circulation. The balance of the $2.6 billion is on deposit in the Island's financial institutions.

BMA general manager Monroe Sutherland cautioned that the $100 million increase in money supply follows "abnormally" low second quarter figures. "The increase in the third quarter which is quite large, I would be suspicious that it may be a timing issue." Mr. Sutherland said figures reported on the last day of the quarter - which ended on September 30, 2001 - may include transactions from the second quarter that cleared after the reporting day.

"I don't think one should read much in to those numbers. When one looks at the real economy, intuitively one is not expecting to see real growth and by the end of the third quarter we were already seeing the affects of September 11. It is curious that the third quarter figure is that high and I am suspicious that it is a timing issue." Mr. Sutherland added that fourth quarter and the total year-end results may put the low second quarter and high third quarter results in to perspective.

"Low Bermuda dollar figures in the second quarter could lead to high third quarter figures. With fourth quarter results we will have a bigger base and that may be a more correct number. We need to have a little longer in the series."