retailers.

The Bermuda Monetary Authority said the problem is mainly affecting $2, $5 and $10 notes.

Retailers and members of the public have found that many of the magnetic strips which are woven through the notes are hanging loose. The entire strips can then be pulled out of the note.

Cashier Cecilia Downs, who works at Dismont Robinson's Liquor Store in Hamilton, said: "It's terrible. When the strip comes out the whole note falls apart. We are getting a couple a day.

"We scotch tape them. What else can you do? You'd end up with a drawer full of torn money. Customers don't want damaged notes.'' But she said some customers were themselves presenting notes in two pieces because they can't be bothered to fix them.

She added: "It seems to be so cheap. It's worse than the old money. It doesn't seem to be holding up.

"It already looks like the old money but it's not even been out that long.'' The Bermuda Monetary Authorities (BMA) Deputy General Manager Colin Furr said: "We are in talks with the printers and they are reviewing the situation to rectify it as soon as possible.

"Hopefully that will minimise any of the problems retailers are having.'' Bermuda money falling apart The BMA said the problem only affected a small number of notes and that the printer will replace faulty ones free of charge.

Mr. Furr urged retailers to send faulty notes back to the banks or the BMA but he said notes with silver strips were still legal tender.

"We do need to know. People should bring it to our attention so we are more than pleased to hear directly.

He said the silver strips were a security feature. He said: "But there are many others in the notes.'' And he denied the problem would make the forgers job easier. The new notes also have more intricate designs, sharper colours and a tuna fish watermark.

And he was unable to confirm whether the problem was caused by weak or thin paper.

But he added: "There are lots of older bank notes in existence. There should be minimum disruption.'' Mr. Furr said the BMA were in talks with their regular UK suppliers DeLaRue Currency over the blunder and he said it was impossible to say when the problem would be fixed.

He added: "They are international and print for countries around the world.

They have been producing bank notes for many years.''