British holidaymakers in a rush to exchange their pounds ahead of EU Referendum

British holidaymakers are in a rush to exchange their pounds for foreign currency ahead of the EU referendum.

According to the Post Office, which accounts for 25 per cent of all British foreign exchange transactions, currency sales were up 74% year on year since the weekend.

The Post Office said that branch sales rose 48.8% compared to the same period last year, while online orders surged by 381%.

Over the past week the pound has recovered slightly on expectations that Britain will vote to ‘Remain’.

five pound notes
Last week £1 bought about €1.26, on Monday that rose to €1.29, and on Wednesday (one day before the vote) that rose to €1.31.

However, a vote to leave is forecast to cause the pound sterling to plunge by as much as 20%, according to investment bank Goldman Sachs.

Other economists and the Bank of England have similarly warned that a vote to quit the EU could cause the value of the pond to drop sharply.

There is fear among British consumers that the UK will vote to Leave and prompt the pound to drop drastically.

FairFx, an international payment services provider, said that it’s seen an increase in the number of British consumers buying prepaid currency cards that allow people to lock into a current exchange rate.

Ian Strafford-Taylor, chief executive of FairFX, said: “While it is impossible to predict, the behaviour we’ve seen with optimistic clients and strong momentum from the remain campaign seems to have clients confident that the pound will see a relief rally following a clear win for remain. Some suggest we could see the pound strengthen as much as 5% following the results from Thursday’s referendum.”

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