Dollar in Ukraine should cost eight USD – the big Mac index

The Ukrainian hryvnia is currently undervalued at 69.5%. This is evidenced by recent “big Mac Index” (The Big Mac Index), regularly compiled by the publication The Economist.

The big Mac index The Economist expects from 1986 based on the price of a sandwich in different countries to determine the extent to which a country’s currency is undervalued (or overvalued) relative to the U.S. dollar. The basis is the cost of big Mac in the States and it is believed that the currency of any country he is in terms of dollars should cost the same. If there is more currency is overvalued to the dollar, less undervalued.

So a big Mac in Ukraine is 1.54 dollars, that is 42 of the hryvnia. In American McDonald’s Burger costs 5.06 USD. Taking into account the official exchange rate, analysts have calculated that the dollar should cost 8.3 hryvnia. Thus, the hryvnia is the currency of the second world undervalued.

As you know, today the official rate of the dollar in Ukraine is set at a level of 27.25 hryvnia.

Heaviest invaluable Egyptian pound – in 71,1%.

At the same time, the most overvalued currency is the Swiss franc, the exchange rate is overvalued by 25.5%. Another country where the national currency is overvalued, was the Norwegian Krone is overvalued by 12%.