According to the so-called Big Mac index, the Ukrainian hryvnia is undervalued by 49%, journalists said.
The dollar in Ukraine “should” be worth about UAH 18.82, and the Hryvnia itself is undervalued by 49%, according to the so-called Big Mac index. The British edition of The Economist came to such conclusions in a study in August.
The Ukrainian hryvnia rose to seventh place from the bottom in the list of undervalued world currencies in the updated Big Mac index. At the beginning of the year, the hryvnia was in fourth place.
According to the publication, a Big Mac costs 105 hryvnias in Ukraine, while in the US it costs 5.58 dollars. Thus, the Ukrainian currency rate is undervalued by 49% compared to the actual exchange rate of UAH 36.93/USD, while the purchasing power rate should be at the level of UAH 18.82/USD.
That is, according to analysts, the “fair” price of American currency in Ukraine.
The most undervalued currencies in the world in August 2023 were the currencies of Taiwan, Indonesia, India, Egypt, South Africa and the Philippines.
The overvalued currencies are the Swiss franc (by 38.5%), the Norwegian krone (by 24.0%), the Uruguayan peso (by 22.9%), the Argentine peso (by 7.4%), the euro (by 4.3%), Swedish krone (by 2.8%), Danish krone (by 1.3%).
Recall that in July 2022, The Economist did not analyze the hryvnia against the dollar in the Big Mac index, because the McDonald’s chain temporarily closed its fast food restaurants after the Russian invasion. After that, McDonald’s restaurants began to open in Ukraine.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.