Big Mac Index: Dollar should be worth less than 11 UAH

The hryvnia was named one of the most undervalued currencies in the world by the Big Mac index.

According to Big Mac, the real exchange rate of the hryvnia to the dollar should not exceed 11 hryvnia to the dollar, making the Ukrainian currency one of the most undervalued in the world, reports The Economist.

It is observed that today in Ukraine a Big Mac costs 62 hryvnia, while an American hamburger costs 5.66 dollars in the United States. We divide one number by another and get the result: 10.95. This is exactly what the real exchange rate of the dollar in Ukraine should be according to the Big Mac index, the newspaper notes.

Therefore, the Ukrainian hryvnia is currently undervalued by 61.1%.

The publication placed the Lebanese currency in the first place of the undervalued currency. At the same time, the Swiss francs took the lead in overvalued money.

The starting point of the index is the price of the Big Mac in the United States of America, the country where the dollar comes from. And then this figure is compared to the cost of the same hamburger in any other country in the world. The calculation was based on the price of a common sandwich, as it is a kind of analog of a grocery basket, as it contains bread, meat, and vegetables.

The hryvnia was previously reported to be in the top five most undervalued currencies according to Big Mac.

We will recall, today the dollar rate on exchange offices fell below 28 hryvnia.

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