London: The British Pound crashed to its lowest levels in 31 years as the UK on Friday voted to leave the European Union (EU) in a historic referendum. The Pound dropped below $1.35 against US dollar for the first time since 1985. The currency fell as much as 11 percent and was on course for its biggest one-day fall ever. It was down against all major world currencies.

The UK is first country to vote to leave the European Union. Prime Minister David Cameron resigned on Friday, saying he would hand over to a new leader in about three months.

The pound swung wildly during the referendum campaign in response to opinion polls. Economists opine that with British Pound reeling under pressure, UK is now poorer than France as pound hits 30-year low.

FTSE 100 drops 8.7 percent following British vote to leave EU. Stocks markets around the world are also falling sharply after the campaign to leave the EU won Thursday’s referendum.

Economists have been warning for months that if the UK referendum resulted in a vote for a British exit (Brexit) from the EU, that would do lasting damage to the British economy.

Reacting to the market fell, the Bank of England has decided to take all necessary steps to meet its responsibilities for monetary and financial stability. “The Bank of England is monitoring developments closely. It has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks,” Bank of England said in a statement.