Completed figures for the end of 1993 confirmed the total value of notes and coins in circulation was around $53 million, a four-year high.

Official records show the money supply last registered $53.6 million at the end of 1989. A year later, the figures had dropped by $2 million and they were down a further $1.4 million at the end of 1991.

By the end of 1992, there had been a slight improvement, with a $700,000 rise to $51 million.

But there was a dramatic climb of $2 million during 1993. Bermuda Monetary Authority general manager, Malcolm Williams said it was a good sign.

"That is a good indicator that we are starting to recover. There is still a little bit of uncertainty in the United States, as they hiked interest rates to keep a lid on inflation. I doubt that it will affect us in any way.

"There would have to be major increases in the lending rates in the US before there would be an increase in loan rates here.'' Also viewed in a positive light by the BMA are figures from banks and deposit companies, which show increasing activity.

Total loans and advances show a fourth quarter increase of $16 million, as deposit company mortgages increased by $18 million, resulting in a net increase in combined loans, advances and mortgages for quarter four of $35 million.

The net effect was a decrease in surplus deposits of $48 million, down 13.7 per cent.