But energy importers China and India have seen their currencies strengthen against the dollar.įor those who can stomach (yes, I know what I did there) what is quite possibly the biggest number of food puns ever squeezed into one article, the Economist has full details of this year’s index. Other insights from the latest index are that the currencies of commodity exporters are those that have lost the most ground relative to the dollar – so the Brazilian real, Russian rouble and Norwegian kroner have all weakened. ![]() The index suggests the euro is around 11% undervalued against the dollar. Since last week’s ditching of the euro peg the price has risen to $7.54. Buying a Big Mac in Switzerland costs $6.38 at market exchange rates, suggesting the Swiss franc was about 33% overvalued. So the Big Mac index says that the yuan was undervalued by 42% at that time. Photograph: McDonald's Thomson Reuters IMF The Economistįor example, the average price of a Big Mac in the US this January was $4.79 in China it was only $2.77 at market exchange rates. ![]() ![]() The Economist’s Big Mac Index on where you get most burger for your buck and a rough guide to relative value of currencies.
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