Index “big Mac”: the ruble is undervalued against the dollar by almost 70%

Index “big Mac”: the ruble is undervalued against the dollar by almost 70%


LONDON, 11 January the Russian ruble is currently undervalued against the dollar by 69% according to the index of “big Mac”, which is used to compare purchasing power and exchange rate of national currencies against the US dollar.

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It is reported by British magazine The Economist, which calculate the index.

According to the publication, the price of “big Mac” in Russia in January 2016 was $1,53 (114 rubles at the exchange rate of 75,66%) 4,93 against the dollar. This means that the fair rate of the ruble is 23,12 rubles per dollar, meaning the Russian currency is undervalued by 69%, calculated The Economist.

The worst performance index in recent years was recorded in January of last year, when the ruble was undervalued by 71.5%.

Among all countries included in the index, the most undervalued currency is the Venezuelan Bolivar. She’s underrated in 86,5% with the value “big Mac” in Venezuela $0,66 (132 Bolivar). His fair rate – of 26.77 Bolivar per US dollar.

The most overvalued to the us dollar Swiss franc – by 30.7%. The price of “big Mac” in Switzerland in January 2016 was $6,44 (6,5 Swiss francs at the exchange rate of 1.01 francs per dollar). Fair rate for Swiss franc us dollar index the “big Mac” should be to 1.32 francs.