The Economist has published updated data on the rating of world currencies, the so-called Big Mac Index, according to which the cost of the hryvnia is underestimated by 61.3%, and the real rate according to purchasing power parity should be UAH 9.93 per U.S. dollar, the Ukrainian Dzerkalo Tyzhnia (Mirror Weekly) ezine said. Early this year, the Ukrainian currency was underestimated by 65.2% according to the Big Mac Index.
The Big Mac Index is an index created by The Economist based on the theory of purchasing power parity (PPP). Over the long-term, PPP theory states that currency exchange rates should equal the price of a basket of goods and services in different countries.
The official forex rate set for Ukraine’s hryvnia on July 12 is UAH 25.8 per U.S. dollar.
