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Reuters
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The “Big Mac” index adopted by The Economist magazine to value countries’ currencies has shown that most of the world’s currencies are undervalued against the dollar, and the same is true of Arab currencies.
The “Economist” launched the “Big Mac” index in 1986, and it has become a global standard and a means of measuring the purchasing power of currencies to know whether they are below or above their true value.
The index is based on a comparison of the purchasing power of currencies in 48 countries, where the hamburger represents a unit that makes it easier to compare the exchange rate of currencies against the dollar or its purchase value.
The Economist reported that the Lebanese pound is the most undervalued currency in the world, and estimated that the Lebanese currency is undervalued by 70.2%, followed by the Russian ruble, which was considered to be undervalued by 59.9%.
The following is a table showing the valuation of some Arab currencies against the dollar according to the “Big Mac” index (data for July 2021):
economist
The index also indicates that most currencies in the world are valued below their fair value against the dollar, with the exception of the Swiss franc, Swedish kronor and Norwegian kroner, for example, the Swiss franc is overvalued by 24 , 7%.
Source: RT
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