We can draw similar conclusions for other Forex currency pairs. After all, if the Japanese yen is significantly oversold against the US dollar, traders should refrain from opening long positions on USD/JPY. We can hardly do it in the short and medium terms, but the Big Mac Index can serve as a helpful assistant while long-term trading.įor example, it can be used as a filter when opening positions in the Forex market. Notably, according to the Big Mac Index, all major currency pairs, except the Swiss franc and Norwegian krone, are undervalued against the US dollar. The average Big Mac price in the Eurozone is $4.95, meaning the currency is undervalued by 14.72%. Norwegian krone overvalued by the market by 10.03%.Īccording to the Big Mac Index authors, Euro is also undervalued by the market. However, the value of this pair is currently quoted around 0.93 in Forex, which makes the Swiss currency overvalued by the market by 20.16%. Notably, the currencies of India, Pakistan, the Philippines, and other low-income countries are not in the top five most undervalued currencies in 2022.Īs for the most highly valued currencies, the statistics by countries show that the world’s most overvalued (expensive) currency is the francs in Switzerland.Ĭonsidering that Big Mac costs 6.98 francs in Switzerland, the USD/CHF rate expressed in the Big Mac Index terms should be 1.12 francs per dollar. When Mac Quicken 2018 was announced as subscription only, I vented on Twitter 'Quicken is now sold on a membership basis.' Screw thatitd cost me 50/year just for quote downloads, basically. In the list of the world’s most undervalued currencies, the Russian ruble and the Lebanese pound are accompanied by the Malaysian ringgit (undervalued by 58.92%), Indonesian rupian (undervalued by 59.31%), and the Romanian leu (undervalued by 58.65%). Therefore, we can conclude that the market undervalues the Turkish currency by almost 68%. However, the lira is cheaper in Forex – about 13.42 lira per US dollar (as of January 2022). While the price of the burger in the United States is $5.81, the Turkish currency exchange rate is 4.30 lira per dollar in terms of the Big Mac Index. In 2019, the Russian ruble was the most undervalued (by 64.5%) currency worldwide.īig Mac costs $1.86 in Turkish. Thus, the Russian ruble is the world’s most undervalued (cheapest) currency according to the Big Mac Index. The Russian ruble exchange rate expressed in the Big Mac Index in January 2022 is 23.24 ruble per dollar.Ĭonsidering that the current market rate of the Russian currency is about 77.42 ruble, rather than 23.24 per US dollar, the ruble is undervalued by approximately 70%.
It is essentially a Big Mac with added bacon. Big Mac Bacon was introduced in selected markets in 2018, as a limited-time option.
Released in Australia and New Zealand as a promotional item in late 2017. The most relevant Big Mac Index so far (as of January 2022) is presented in the table below. Big Mac BLT is a standard Big Mac burger with the addition of bacon and tomato.
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