The Ukrainian hryvnia according to the Big Mac Index took eighth place from the bottom in the list of undervalued currencies of the world, the hryvnia exchange rate should be 19.33 UAH/$. This is stated in the published results of a study by The Economist magazine, which calculates world currency rates based on purchasing power parity.
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A Big Mac in Ukraine costs 110 UAH, and in the USA it costs $5.69. Thus, the Ukrainian currency rate is undervalued by 48.4% compared to the actual exchange rate of 37.44 UAH/$. The real hryvnia exchange rate in this case should be 19.33 UAH/$.
The most undervalued currencies
- Taiwanese dollar – by 58%, Indonesian rupiah – by 57.3%, Indian rupiah – by 54.5%.
The most overvalued currencies
- Swiss franc – by 43.5%, Norwegian krone – by 25.5%, Uruguayan peso – by 23.7%.
Remember
In 2018, the hryvnia according to the Big Mac Index was undervalued by 65.1% – the most in the world. Then it was noted that the real exchange rate of the hryvnia should be 9.68 UAH/$.