The Big Mac Index, the method of the comparison of the purchasing power of the world regions on the basis of the cost of the standard burger shows that hryvnia turned out to be one of the most underestimated currencies of the world as The Economist reported.
The Big Mac costs 54 hryvnia ($1,92) and $5,58 (156,5 hryvnia) in the United States. Thus, the cost of hryvnia is underestimated by 65,2% and the real course of the in purchasing power should be in the sum of 9,68 hryvnia ($0,34) per dollar.
Hryvnia occupied the second to last pace and the Russian ruble took the last place; it is underestimated by 70,4%.
The most overvalued currency is the Swiss frank; its course should be by 20% lower than it is.
In 2018, Ukraine’s national currency, hryvnia was recognized as one of the world’s most undervalued currencies according to the Big Mac Index.
Burgernomics was never seen as a precise gauge of currency misevaluation, it only served as a tool to make exchange-rate theory more digestible. The Big Mac index, however, has become a worldwide standard, has been included in a variety of economics textbooks, and has become the subject of at least 20 academic research papers.
As we reported, Ukraine took the 84th place in the Democracy Index 2018 out of 167 countries of the world and the 17th place in Europe.
Earlier Ukraine improved its position in the passport rating for three points in 2018 and occupied the 41st place in the Henley & Partners Company list.