Business

Holidaymakers 'rush to buy foreign currency'

500 euro notes Image copyright Getty Images

Holidaymakers have been rushing to buy travel money, in case the pound falls in value after the EU referendum, according to currency experts.

Exchange firms said travellers were stockpiling currencies as a protection from sudden movements in rates.

Last week the Post Office saw a 57% uplift in sales worth more than £500, and a surge of 215% over the weekend.

Foreign currency firm Travelex, said the catalyst was a rally in the value of the pound on financial markets.

"We did notice a 30% uplift for traffic to our UK website on the day that the pound regained its strength last week," said Travelex's head of pricing, David Swann.

"We also saw an increase in the average transaction value."

David Cameron and the Chancellor, George Osborne, have referred repeatedly to a Treasury forecast that the pound would fall sharply if the UK votes to leave the EU.

The Vote Leave campaign accused them of talking down the economy and pointed out that the pound had been stable in recent months.

A specialist currency firm, Caxton FX, said its business was currently 20% up on last year.

Its chief executive, Rupert Lee-Browne, said he saw "increasing concern that the pound will fall, from customers who are travelling in the summer."

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