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Big Mac index: hryvnia was included in the top 10 most undervalued currencies

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.

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