travel allowance for Bermudians be abolished.

BMA general manager Mr. Malcolm Williams said the Authority had recommended abolition " at a suitable time'' partly because the average amount Bermudians take with them on vacation has been $2,500.

In recent years, those wishing to take more than the limit have only had to inform the BMA.

"We don't believe that the public will abuse the freedom,'' asserts Mr.

Williams. "We will be able to monitor the situation and if there is abuse, we can always put the controls back on.'' Mr. Williams said the moves toward the complete abolition of exchange controls had various ramifications. For example, the fact Bermuda residents can now borrow from foreign banks might have a consequence for the local retail trade.

"I think that in recent years there has developed an attitude of awareness by Bermudians that they can plan, actually plan to go overseas and buy major items for their homes.

"You see it in the dutiable items that are coming through at the Airport.

People are more conscious, as a result of the recession, to get more value for money.'' The Authority has suggested one of the possible consequences of the removal of exchange control would be to allow Bermuda residents to have dual US dollar and Bermuda dollar accounts which would be useful for travel.

"Such a situation exists in Guernsey, where Bermuda banks which operate there have such a facility for Guernsey residents.

"Another possible consequence might be the expansion of the status of deposit companies as authorised dealers in foreign currency. Would it offer more competition? What would they offer? "You would still need to restrict the number of entities that would be allowed to do it. But there is already one of them that is doing it,'' he said, referring to LP Gutteridge, from whom one can obtain American Express travellers' cheques.

An extension of that opportunity to other deposit companies may be necessary to improve their business as the enter into competition with overseas lenders.

When the overseas borrowing policy was announced on February 23, there were specified exceptions. They included the fact that one couldn't buy Bermuda residential property with the money or use it for mortgage payments, or lend the money back out in Bermuda Dollars.

The BMA no longer requires that incoming cash be converted from American dollars to Bermuda currency, unless it is borrowed from an outside bank. Mr.

Williams said the $25,000 investment cap control still allows 90 percent of the population to invest money overseas.