Latest Big Mac Index by The Economist magazine

According to The Economist magazine’s latest Big Mac index, the Russian rouble is one of the cheapest currencies around, 69% undervalued against the dollar. The index compares the cost of the famous burger at McDonalds outlets in different countries by converting local prices into dollars using market exchange rates (as of January 6th, see chart below). It is based on the idea that in the long-run, exchange rates ought to adjust so that one dollar buys the same amount everywhere. If a burger looks like a bargain in one currency, that currency could be undervalued.

Read the complete article on The Economist.

View an interactive world map of the Big Mac Index.

Big Mac Index 2015

Big Mac Index 2015

Advertisements