The Economist experts have named the optimal hryvnia exchange rate against the dollar.
The well-known publication The Economist has updated the data of the famous Big Mac index. Where did the Ukrainian national currency end up, reports the Chronicle.info with reference to Channel 24.
The Big Mac Index was created in 1986 as an easy guideline for determining &# 171;real» the value of the national currency. Over the years, this instrument has become a world standard.
The Ukrainian hryvnia is undervalued by 58.1%
In Ukraine, you have to pay for a Big Mac 69 hryvnia against $5.81 in the USA. Thus, the exchange rate should be at the 11.88 hryvnia per US dollar. The difference between this figure and the actual exchange rate in Ukraine indicates that the Ukrainian hryvnia is undervalued by 58.1% ;against the US dollar. Big Mac Index data for previous years:
- In 2021, The Economist experts noted that the Ukrainian hryvnia is undervalued by more than 57%, and the dollar should cost 11.5 hryvnia;
- In 2020 year, the situation was as follows: the Ukrainian currency was undervalued by 58.1%. According to British economists, the dollar exchange rate should then stop at 10.05 hryvnia;
- In 2019, economists believed that the hryvnia was underestimated by 65.2%. Accordingly, the dollar should trade at the level of UAH 9.68.
On topic! The Economist emphasizes that the Big Mac index is not a full-fledged tool for evaluating national currencies, but a way to simplify the logic of the exchange rate.
As of February 3, 2022, the National Bank of Ukraine set the US dollar exchange rate at 28, 39 hryvnia. The Ukrainian hryvnia was included in the list of the 10 most undervalued currencies in the world, taking the sixth line. The first five places in this ranking were taken by:
- Russian ruble — by 70%,
- Turkish lira — by 69, 9%,
- Indonesian rupiah — by 59.3%,
- Malaysian ringit — by 58.9% ,
- the Romanian leu — by 58.1%.
The Economist experts called the Swiss franc the overvalued currency ( by 20.2%) and the Norwegian krone (by 10%).