Ukrainian hryvnia jumped from the fifth to the seventh place in the top list of the most unrated currencies according to the Big Mac index as The Economist reported.
According to the research, the cost of Big Mac in Ukraine equaled to 57 hryvnias (2.35 dollars), when in the USA it is equaled to 5.67 dollars. As a result, Ukrainian hryvnia is unrated on 58.1%, comparing to the official currency rate exchange equals 23.99 hryvnias/dollar, but relating to purchasing power the rate exchange should be equaled to 10.05 hryvnias/dollar.
The most underrated currencies of the world in January 2020 are monetary units of South Africa, Russia, Romania, Turkey, Azerbaijan and Malaysia.
The most overrated currencies are Swiss franc and Norwegian krone. In Switzerland, Big Mac costs 18,4% more expensive than it is in the USA and in Norway by 5,3%.
In 2019, hryvnia turned out to be underestimated by 65,2$. The real course of the in purchasing power should be in the sum of 9,68 hryvnia per dollar.
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.