The Big Mac index, which is a measure of currency undervaluation, shows that the Ukrainian hryvnia is undervalued by almost 50% against the dollar. Find out more about what this level of undervaluation of the hryvnia in the international currency market indicates

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The Ukrainian hryvnia was undervalued by 48.4% against the dollar according to the Big Mac Index, which is calculated by The Economist every six months, in January and July.

As you know, the Big Mac Index, which has been determined by The Economist since 1986, is based on the cost of a burger in different countries. It is believed that a country's currency is undervalued if the cost of a Big Mac in that country is lower than in the United States, and vice versa.

Big Mac and its price in Ukraine and the USA

The cost of a Big Mac burger in Ukraine is 110 hryvnias, while in the United States this amount is only 5.69 dollars. The actual exchange rate between the hryvnia and the dollar is currently 37.44 hryvnia to one dollar. In terms of purchasing power, the rate should be 19.33 hryvnia to one dollar.

Dynamics of the Ukrainian hryvnia undervaluation

In January 2023, the hryvnia was undervalued by 53.5%, and in July of the same year - by 49%. Compared to the beginning of 2022, when the undervaluation was 58.1%, the situation has improved.

Similar figures were recorded in 2020. It is worth noting that in 2018, the Ukrainian hryvnia was the most undervalued currency in the world.

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Currently, Ukraine ranks eighth in the ranking of countries in terms of undervaluation of currencies against the dollar. The list is followed by the Philippines, Malaysia, Egypt, South Africa, India, Indonesia, and Taiwan. Hong Kong is ranked ninth from the bottom.

The top three countries with overvalued currencies against the dollar are Switzerland, Norway, and Uruguay.

This time, the most overvalued currencies were the Swiss franc, Norwegian krone, Uruguayan peso, euro, Swedish krona, Costa Rican colon, British pound, and Danish krone.

We remind you! The Corruption Perceptions Index for 2023 shows significant progress in Ukraine's fight against corruption. The three-point increase was one of the highest in the world. Find out more about Ukraine's ranking and which countries are outsiders in the ranking.

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