This is reported by RBK-Ukraine, referencing data from the ranking by The Economist for January 2025. Reports are also provided by Kontrakty.UA.
According to the publication, a Big Mac costs 120 hryvnias in Ukraine, while in the USA, it is priced at $5.79. Thus, the exchange rate of the Ukrainian currency is undervalued by 50.7% compared to the actual exchange rate of 42.0 UAH/USD, while the purchasing power parity exchange rate should be around 20.73 UAH/USD.
Data from recent years indicate a significant undervaluation of the hryvnia, which does not prevent the Ukrainian currency from continuing to devalue. In 2024, the Ukrainian hryvnia ranked eighth from the bottom in the Big Mac index.
The most undervalued currencies in the world as of January 2025 are the currencies of Taiwan, Indonesia, India, Egypt, and South Africa. This list has hardly changed compared to 2024.
Overvalued currencies include the Swiss franc (by 38.0%), Argentine peso (by 20.1%), Uruguayan peso (by 19.3%), Norwegian krone (by 15.3%), euro (by 2.8%), and Costa Rican colón (by 1.9%). The British pound has dropped off the list, while the Costa Rican currency has made it to the top.
Big Mac Index
The Big Mac index was developed by The Economist in 1986. The methodology for calculating the index is based on the theory of purchasing power parity (PPP), which states that the exchange rate should equal the cost of a basket of goods (in this case, a burger) in different countries.
In July 2022, The Economist was unable to assess the hryvnia's exchange rate against the dollar in the Big Mac Index, as McDonald's temporarily closed its fast-food restaurants following the Russian invasion. However, McDonald's restaurants have since begun to reopen in Ukraine.
The Russian ruble remains absent from the index as McDonald's has exited the Russian market.