According to the Big Mac index, the hryvnia should have been 20.73 UAH/USD, which is 50.7% lower than the actual level of 42.0 UAH/USD. Ukraine ranks sixth from the bottom among the most undervalued currencies.
Written by UNN with reference to The Economist.
The Ukrainian hryvnia has been ranked sixth from the bottom among the world's most undervalued currencies according to the updated Big Mac index. According to the publication, the cost of a Big Mac in Ukraine is 120 hryvnias, while in the United States it is 5.79 dollars.
This means that the hryvnia is undervalued by 50.7% compared to the actual exchange rate of 42.0 UAH/USD. At the same time, according to purchasing power parity, the exchange rate should have been 20.73 UAH/USD.
Undervalued currencies as of January 2025:
- Taiwanese currency (-58.8%);
- Indonesia (-56.2%);
- India (-54.8%);
- Egypt (-53.6%);
- SOUTH AFRICA (-52.0%).
Revalued currencies as of January 2025:
Swiss franc (by 38%);
Argentine peso (by 20.1%);
Uruguayan peso (by 19.3%);
Norwegian krone (up 15.3%);
euros (up 2.8%);
columns of Costa Rica (by 1.9%).
Recall
The National Bank of Ukraine has set the official hryvnia exchange rate at 41.9294 UAH/USD, which strengthened the hryvnia by 9 kopecks, UNN reports, citing NBU data.