The hryvnia exchange rate in Ukraine is artificially and unfairly low, but the dollar, on the contrary, is overpriced. Analysts came to this conclusion The Economist,, having studied the ratio of the "Big Mac index" with the Ukrainian exchange rate.
The Big Mac index is a calculation method that allows you to compare the purchasing power parity of two currencies. This parity should approximately equalize the value of the currency and the ability to purchase one or another conditional basket of goods with it. Take the Big Mac burger from McDonald's as an example: it contains all the products (bread, meat, vegetables) that can serve as a universal model of agriculture in any country.
That is, on average, a Big Mac should cost plus or minus the same everywhere. In Ukraine, the situation is different. Yes, in the USA this burger costs about 5,6 dollars. While in our country it costs 65 hryvnias - a little more than two dollars.
"The assumed real exchange rate of the hryvnia to the dollar should be UAH 11,50. The difference between this and the actual exchange rate is UAH 27,22/USD. indicates that the Ukrainian hryvnia is undervalued by 57,7%", says The Economist in an analysis.
