The dollar exchange rate in Ukraine should be twice as low as UAH 20.7

The Ukrainian currency is undervalued by 49.5% compared to the actual exchange rate of UAH 41.05/dollar, according to the updated Big Mac Index for July 2024, published by The Economist .

According to the data, a Big Mac in Ukraine costs 118 hryvnias, while in the United States its price is $5.69. This indicates that the Ukrainian currency is undervalued by 49.5% compared to the actual exchange rate of UAH 41.05/dollar. According to purchasing power parity, the exchange rate should be at the level of UAH 20.74/dollar.

Among the most undervalued currencies were also the currencies of Taiwan, Indonesia, Egypt, India, South Africa, the Philippines and Malaysia, the list of which has not changed since January 2024.

At the same time, the most overvalued currencies are the Swiss franc (by 41.8%), the Uruguayan peso (by 24.3%), the Norwegian krone (by 18.9%), the Argentine peso (by 15.0%), the euro (by 6. 5%) and the British pound (by 3.6%).

What is the Big Mac Index?

The Big Mac Index was created by The Economist in 1986. The methodology of the index is based on the theory of purchasing power parity (PPP), which states that the exchange rate should equalize the value of a basket of goods (in this case, a burger) in different countries.

In July 2022, The Economist failed to estimate the hryvnia to dollar exchange rate in the Big Mac Index because McDonald's temporarily closed its restaurants in Ukraine due to the Russian invasion. Later, network establishments began to resume work.

The Russian ruble is absent from the index because McDonald's has left the Russian market.

spot_imgspot_imgspot_imgspot_img

popular

Share this post:

More like this
HERE

Nature is stronger than predictions: what is happening at the site of the Kakhovka reservoir

The destruction of the Kakhovka Dam became one of the largest environmental disasters...

Eating without cooking: the world has been captured by the "street cat" diet

An unusual approach to nutrition is gaining popularity around the world -...

Why spinach is called a superfood for health and youth

Human health largely depends on daily habits, including...

Prosecutor Oksana Nidzelska's family owns apartments in Kyiv and Spain

Oksana Nidzelska, a prosecutor of the Prosecutor General's Office, does not have...

Individual diets and workouts from ChatGPT: convenient and fast

ChatGPT artificial intelligence can now become a useful assistant for...

A prisoner in Chernihiv sold grenades and cartridges while in a pre-trial detention center

The Chernihiv Regional Prosecutor's Office announced the opening of a trial regarding...

In Transcarpathia, a court remanded a teenager in custody for brutal murder and torture

The Transcarpathian Court of Appeals has remanded in custody a minor suspected of...