Kiwis rush to buy up pounds post-Brexit

(AAP)
(AAP)

In New Zealand there's been such a rush to buy up pound notes that one currency chain is running low on cash.

Kiwi travellers and a few speculators have been buying pounds simply because they've won more bang for their buck since Brexit became likely.

"We've seen it go mental in our stores across the country since yesterday afternoon," Travel Money country manager Scott McCullough said.

"We had record highs yesterday -- and today, across the country, we've pretty much sold out of pounds now."

The pound has suffered its biggest crash in 31 years against the US dollar, and it fell against ours too.

Yesterday morning our dollar bought £0.485. Today it buys more than £0.52 on international Forex markets.

"I'm going on holiday at the end of August and I needed to buy pounds anyway, so what better time than now? It's a great time to buy some pounds," traveller Cushla Lewis said.

The vote jolted world markets; British stocks fell almost 3 percent as Japan plunged almost 8 percent. The European Index was down more than 8 percent.

The contagion quickly spread to the US, with the Dow falling more than 600 points.

Britain was the fifth biggest economy in the world, but thanks to the Brexit it has tumbled to sixth, making tourism one of the few areas of the British economy to benefit.

Travel agents have told Newshub there has been a spike in inquiries about travel to the UK, piqued in part by the fact their discretionary spend has overnight grown by about six percent.

This afternoon the Prime Minister moved to calm jitters at home.

"New Zealand's economy is well balanced, well placed, quite diversified, in good shape and performing well, and a lot of those factors I don't think are going to change, even if there's a bit more turmoil in Europe," John Key said.

Paul Glass of Devon Funds Management gave assurances the markets will stabilise.

"In and of itself, Britain exiting is significant but not a disaster," he said.

"The real problem for the euro is if one of the other nations becomes emboldened by Britain's position and decides to exit itself."

Britain never adopted the euro, but if that currency unravels, Paul Glass says that would have significant consequences for the world.

Newshub.