Facebook Pixel

Big Mac index: Hryvnia is 58% undervalued

Big Mac Index: Top undervalued currencies in the world. Photo: The Page

Big Mac Index: Top undervalued currencies in the world. Photo: The Page

The hryvnia is one of the ten most undervalued currencies in the world. According to the Big Mac index, the Ukrainian currency is undervalued by 58.1%, The Economist magazine reports this in its study.

The analysts clarify that a Big Mac costs $5.81 in the US, and 69 UAH in Ukraine, so the fair exchange rate should be 11.88 UAH per dollar.


бігмак-r0.png

At the same time, the following currencies are overvalued:

  • Swiss franc—by 20.2%
  • Norwegian krone—by 10%.

The top five most undervalued ones are as follows:

  • Russian ruble—by 70%,
  • Turkish lira—by 69.9%,
  • Indonesian rupiah—by 59.3%,
  • Malaysian ringgit—by 58.9%,
  • Romanian leu—58.1%.

The Ukrainian hryvnia ranks 6th (58.1%).

Context. The Big Mac Index was established in 1986. The Big Mac is presented as a universal product that can be bought in most countries, and therefore it should cost the same everywhere.

The Economist points out that this index is not a full-fledged instrument for evaluating currencies, but only a way to make the logic of the exchange rate clearer.

Thank 🎉
Comments
All News