The Russian ruble, according to the updated version of the Big Mac index published by The Economist, has once again become one of the most undervalued currencies in the world.
The so-called Big Mac Index is published twice a year. It is based on an analysis of the purchasing power parity of currencies based on the cost of a McDonald’s burger. So, if the price of a Big Mac in dollars turns out to be higher than in the United States, then the corresponding currency is considered overvalued, if it is lower, then vice versa.
The article says that this burger costs $ 5.65 (about 420 rubles), while in Russia it costs 169 rubles, or $ 2.27. Thus, in order for the cost of a big mac to be equal, it must cost 29.91 rubles per dollar. However, according to the publication, the ruble is undervalued by 59.9%.
The Russian currency was in the penultimate place in the rating. The ruble occupied a similar position in the Big Mac index list in January of this year, as well as in January and July 2020.
The last place was taken by the Lebanese pound, which is undervalued by 70.2%. At the same time, the list included the euro (11.1%) and the British pound (15.9%).
The list of overvalued currencies includes the Venezuelan bolívar (overvalued by 47.7%), the Swiss franc (by 24.7%), as well as the Norwegian and Swedish krona (11.5% and 9.6%, respectively).
In the summer of 2019, the ruble was also recognized as the most undervalued currency according to the Big Mac index. In the material of analysts it was indicated that in the USA a Big Mac costs $ 5.74, and in Russia – 130 rubles, that is, a little more than $ 2. Thus, the real exchange rate of the Russian currency should be 22.65 rubles per $ 1.