The Economist magazine could not estimate the exchange rate of the hryvnia against the dollar according to the Big Mac index because of the war in Ukraine.
In the analysis for July 2022, the Ukrainian currency is missing, because McDonaldʼs has suspended its work in Ukraine and this burger is currently impossible to buy. The analysis also does not include the Russian ruble — with the beginning of the full-scale invasion of the Russian troops, McDonaldʼs also left the Russian market.
As of July, the most overvalued currencies in the world are the Swiss franc (+30.3%) and the Norwegian krone (21.6%), and the most undervalued are the currencies of Romania (-55.7%) and Venezuela (-65.8%). There, a Big Mac costs half as much as in the US. In the Eurozone, this burger is 7.5% cheaper than in the US.
What is the Big Mac Index?
The world-famous economic publication The Economist has been running its own Big Mac index since 1986. The cost of one of the most famous McDonaldʼs burgers in the USA is defined as a benchmark for comparing world currencies. Researchers compare the purchasing power of citizens of all countries of the world and determine to what extent currencies are overvalued and undervalued. Ideally, the cost of a burger in US dollars should be the same in all countries of the world.