liberalise'' its money exchange policy, says the BMA's policy and research manager.

Mr. John H. Hill said this week exchange control policies are "internationally recognised as outmoded.'' Over the past five years, the BMA, in consultation with the Ministry of Finance, has reduced the burden of exchange control and a number of inconsistencies have been removed -- this process will continue, Mr. Hill added.

Current exchange controls are the product of finance regulations brought down as a wartime measure at the start of the Second World War, he said. But when the war ended the exchange controls continued.

To help answer questions about currency exchange control, the BMA, has released a notice outlining some of the existing conditions likely to affect the public.

Bermuda residents can buy foreign currency from Bermuda banks with Bermuda dollars for all current payments including "reasonable'' travel expenses and cash gifts, according to the BMA.

For current payments like travel expenses and monetary gifts, residents are permitted to buy foreign currency.

The BMA has authorised banks to transact exchanges under $3,000 Bermuda dollars per person per trip. Cash gifts by residents to non-residents of less than $3,000 per adult (18 or over) donor per calender year can also been transacted by Bermuda banks.

For capital transactions, there is a $25,000 limit on the purchase of foreign currency per adult resident per calender year for capital investments by Bermudians and on conversion of savings from Bermuda dollar earnings by non-Bermudians.

Permission from the BMA is required for issues and transfers of securities in unlisted companies and may be necessary for residents to borrow foreign currency.

Bermuda banks may deal with capital transactions relating to the purchase by residents of Bermudian assets other than securities in unlisted companies. For foreign currency borrowing, residents may borrow from any source and use it for any purpose except: The purchase of residential property in Bermuda; Any transaction, refinancing, servicing or repayment relating to existing Bermuda dollar borrowing connected with such residential property or land; Conversion into Bermuda dollars for the specific purpose of lending (including holding on deposit); Direct and other investments unless repayment of the borrowing is financed from foreign currency sources (including $25,000 allowance; Making gifts to non-residents of more than $3,000 per adult per calender year.

Direct investments are those where investors intend to take an active part in an overseas enterprise.

Residents may have foreign currency bank accounts with Bermuda banks or banks abroad where the currency relates to; Conversion from the $25,000 allowance for investment or savings from earnings; Foreign currency borrowing; Unused non-cash travel funds like travellers cheques; Foreign currency proceeds from the sale of foreign currency assets; Income arising from foreign currency assets; Foreign currency pension receipts; Legacies and gifts from foreign currency; Foreign currency authorised for payments for imports: Foreign currency held by travel agents; Sale proceeds of physical exports; Foreign purchases authorised in connection with expenditure for education and medical/dental treatment abroad; The maintenance of resident-owned property outside Bermuda; Foreign currency received in the ordinary course of business by hotels or other authorisations by the BMA.

Foreign currency received by residents from the rental or sale of Bermuda real estate, the sale of Bermuda securities and the sale of goods and services in Bermuda, including fees and salaries from exempted companies, must be sold to a Bermuda bank for Bermuda dollars. But residents engaged in the tourist industry may retain currency received in the ordinary course of their business to give change to tourists.

The BMA may permit residents to retain foreign currency from the above sources.

If on or after April 1, 1993, residents have changed foreign currency, other than receipts described above, into Bermuda dollars which where then credited to their account with a Bermuda bank, they may buy back the equivalent amount of foreign currency. This foreign currency will be in addition to the $25,000 allowance referred to in paragraph three above. The purchase can only be made by the bank which originally converted the foreign currency and only on the bank examining evidence of the original conversion.

Visitors to Bermuda are allowed to take out any banknotes other than Bermudian currency notes in excess of $250 which they brought with them. Permission is required for the export by all travellers (resident or not) of foreign currency banknotes of any amount not covered above and of Bermuda banknotes over $250. Evidence of that permission should be carried by travellers and may take the form of; a blue customer copy of Form FC authorised by a Bermuda bank; an export permission letter issued by a Bermuda bank or; an export permission letter issued by the BMA.

Bermuda banks issuing foreign currency banknotes to residents are limited to a maximum of the equivalent of $3,000 per person per trip.

Export of banknotes, other than by travellers on their person or in their baggage, requires permission from the BMA.

There is no prohibition on the export of Bermuda or foreign coins. A general permission exits covering the export of gold (including gold coins), travellers cheques, bank drafts and other negotiables whether carried by travellers, resident or not, or sent out by other means. Travellers need not carry documentation.

Where residents have questions they should contact any Bermuda bank or the BMA.