The Russian ruble is undervalued by about 60%, experts of the magazine The Economist, which released an updated version of its “big Mac index”. According to them, at the time of calculation of the index in July 2016, the dollar was worth only 25,79 RUB.
In the “big Mac index” is the hypothesis that the same goods should cost the same in all countries of the world, and if not, then the local currency is undervalued or, conversely, overstated.
According to The Economist, the usual big Mac in the US in July 2016, the average cost was $5,04, while in Russia only $2,05 — price Burger 130 rubles and the dollar to RUB 63,41 So for $5 in the US, you can buy one big Mac, and in Russia — almost two and a half. By this logic, it turns out that the ruble is too expensive and to equalize the prices of the burgers, the dollar should fall in price to 25.79 RUB.
However, the ruble is the most undervalued currency in the world, behind the Malaysian ringgit and the Ukrainian hryvnia. If the US big Mac costs $5,04, in the Ukraine in terms of dollars at the official exchange rate, the price is $1,57. Hence, the hryvnia is undervalued by 68.8% and the dollar should not give of 24.8, and only 7,74 hryvnia.
It is undervalued by 50% or more currencies, the Economist’s experts attributed to South African Rand, Taiwanese and Hong Kong dollars, Indonesian and Indian rupee, Mexican peso and Polish zloty.
The most overvalued currency in the world — Swiss franc exchange rate is according to the “big Mac index” is overstated by 30.8%. Inflated was also Norwegian (9.3%) and Swedish (3.7%) crowns.
During today’s trading on the Moscow exchange dollar exceeded 66,5 RUB.