The hryvnia turned out to be one of the most undervalued currencies. According to the Big Mac index, the Ukrainian currency is undervalued by 57.7%, The Economist reported in its research.
The study clarified that a Big Mac costs $5.65 in the United States, and 65 UAH in Ukraine, so the fair rate should be 11.5 UAH per dollar.
At the same time, the overvalued currencies are:
- Venezuelan bolívar—by 47.7%;
- Swiss franc—by almost 25%;
- Norwegian krone—by 11.5%;
- Swedish krona—by slightly less than 10%.
All other currencies were undervalued. The top 10 undervalued ones includes:
- the Lebanese pound—by 70.2%;
- Russian ruble—by 59.9%;
- South African rand—up 59.6%;
- Azerbaijani manat—by 58.9%;
- Turkish lira—by 58.7%;
- Indonesian rupee—by 58.5%;
- Malaysian ringgit—by 58.1%;
- hryvnia—by 57.7%;
- Romanian leu—by 55.2%;
- Indian rupee—by 54.9%.
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 should cost the same everywhere.
The Economist emphasizes that this index is not a full-fledged instrument for evaluating currencies, but only a way to make the logic of the exchange rate more understandable.
