dollar bills, except to hotels, tourists and residents for travel purposes, threatens to cause an uproar among store owners.

Although the BMA gave the order in January, the demand for US money by store owners has shot up since the cruise ship season got underway last month.

Souvenir and gift store owner Mr. John Riihiluoma said he went to the Bank of Bermuda yesterday morning for US$1 bills and was told the bank would no longer be selling them to retailers to make up their daily floats.

"It's ridiculous. We have been purchasing US$1 bills to give as change since we opened for business some 50 years ago,'' Mr. Riihiluoma argued.

"People are going to be irate -- they've had no warning. It's unfair that it's falling on our shoulders because tourists are going to think we are trying to pull a scam on them when, in fact, we are trying to do everything to please them so they will want to come back to Bermuda one day.'' Mr. Riihiluoma said he dealt with many customers who left the Island the following day and "Bermuda money -- no matter if it's a $1 coin or $2 bill -- was unacceptable.'' Department store owner Mr. Eldon Trimingham agreed. "They are going to think they are being ripped off if we give them so-called `funny money' and they have to take it home because they can't get rid of it. That's how they are going to look at it! "We've got to give the tourists what they want, not what we think they should have.'' Mr. Trimingham said his manager had gone to the bank yesterday morning and received only half the amount of US$1 bills requested.

He said he would be seeking to "straighten'' the matter out this week. Other stores contacted by The Royal Gazette yesterday had not yet encountered any problems in getting US money from the banks.

BMA general manager and foreign exchange controller Mr. Malcolm Williams said he did not think the order would undermine the Island's tourist trade by upsetting visitors.

"We are looking to increase the usage of the Bermuda one dollar coin. We have done our research and seen a large quantity of US$1 bills are being given out by the banks and we want to discourage it,'' he said. "I don't think we will be upsetting the tourists if they receive a Bda$1 coin or Bda$2 bill as change instead of US money.'' Mr. Williams said the Chamber of Commerce had been informed. However, neither Mr. Trimingham or Mr. Riihiluoma were aware of the order. A COC member could not be reached for comment.

Bank of Bermuda Financial Department manager Mr. James Masters said he had received a letter from the BMA on January 10 ordering him to stop giving out US$1 bills to retailers, bar and restaurant owners and taxi and buggy drivers, who all purchase US currency to give back to tourists as change.

Non-residents can still go into banks to get Bermuda money exchanged. And US$1 bills can still be given out to passenger ships, hotels and local residents for travel purposes.

Mr. Masters said the new policy had been in place since January but retailers were probably only now beginning to feel the effects with the tourist season well underway causing an increased demand by retailers for US currency.