Country BigMac Price Actual Exchange Rate
1 USD = Over(+) / Under(-) Valuation against the dollar, % Purchasing Power Price
in Local Currency in US dollars
United States $2.65 2.65 1.00 – –
Argentina Peso 3.85 1.3071 2.9454 -50.7707 1.45
Australia A$3.20 2.4638 1.2988 -12.2267 1.14
Brazil Real4.50 1.5812 2.846 -40.267 1.70
Britain £1.99 3.609 1.8136‡ 36.0174 0.75
Canada C$3.20 2.4342 1.3146 -7.9568 1.21
China Yuan9.95 1.2007 8.2871 -54.7489 3.75
Euro area €2.75 3.4294 0.8019 28.4449 1.03
Hong Kong HK$11.25 1.4482 7.7684 -45.4199 4.24
Hungary Forint 492 2.3326 210.92 -11.8149 186
Indonesia Rupiah16,155 1.8951 8524.4 -28.4876 6,096
Japan ¥263 2.473 106.35 -6.535 99.40
Malaysia M$5.10 1.3329 3.8262 -49.8197 1.92
Mexico Peso22.0 2.0121 10.934 -24.09 8.30
New Zealand NZ$3.95 2.6469 1.4923 -0.1541 1.49
Poland Zloty6.30 1.6759 3.7591 -36.687 2.38
Russia Rouble40.00 1.4025 28.52 -47.0898 15.09
Singapore s$3.30 1.9448 1.6968 -26.9213 1.24
South Africa Rand14.05 1.9713 7.1272 -25.637 5.3
South Korea Won3,211 2.6758 1200 0.9167 1,211
Sweden Skr30.0 4.0735 7.3647 53.7062 11.32
Switzerland SFr6.35 5.0501 1.2574 90.87 2.40
Taiwan NT$70.55 2.0916 33.73 -21.0792 26.62
Thailand Baht55.0 1.3966 39.381 -47.3096 20.75
‡ Dollars per pound
Purchasing Power Parity (PPP): is a measure of the relative purchasing power of different currencies. It is measured by the price of the same goods in different countries, translated by the FX rate (or exchange rate) of that country’s currency against a “base currency”.
How to read this table:
In this case, the goods is the Big Mac. For example, if a BigMac costs €2.75 in the countries that use Euro and costs $2.65 in US, then the PPP exchange rate would be 2.75/2.65 = 1.0377.
If the actual exchange rate is lower, then the BigMac theory says that you should expect the value of the Euro to go up until it reaches the PPP exchange rate. If the actual exchange rate is higher, then the BigMac theory says that you should expect the value of the Euro to go down until it reaches the PPP exchange rate.
By: Wombat - 4th February 2004 at 10:25
Aaaahhhh……but do they all taste the same?
(ie Dog…t on a roll?)
Wombat:eek:
By: King Jester - 30th January 2004 at 00:01
steve rowell wrote:
If the actual exchange rate is lower, then the BigMac theory says that you should expect the value of the Euro to go up until it reaches the PPP exchange rate. If the actual exchange rate is higher, then the BigMac theory says that you should expect the value of the Euro to go down until it reaches the PPP exchange rate.
Let me get this, hmmm?
Big Mac exchange index
Country BigMac Price Actual Exchange Rate
1 USD = Over(+) / Under(-) Valuation against the dollar, % Purchasing Power Price
in Local Currency in US dollars
United States $2.65 2.65 1.00 – –
Argentina Peso 3.85 1.3071 2.9454 -50.7707 1.45
So, the argie peso should go up to match the 1.3 PPP? Please good Lord, don’t let that happen again…sure it would be a blizz like the 1990’s (when even an office worker could afford one month vacations in Europe, or a weeks shopping in Miami with the whole family), but it would sink us for ever now. The little growing of the economy (8% estimated for 2004, after a 35% downfall in 2001) is mainly cause of the low value of the peso.
Just hope your Big Mac theroy doesn’t always work…
King Jester
By: steve rowell - 29th January 2004 at 22:56
great stats, but it’s a bit outdated
It’s an indicator my friend it shows you how to work out the exchange rate by example only
By: F-18 Hamburger - 29th January 2004 at 19:03
great stats, but it’s a bit outdated 🙂
By: Flood - 28th January 2004 at 19:49
Because not everyone is like you:rolleyes:!
Flood.
By: Nermal - 28th January 2004 at 10:58
Somebody with too much time on his hands…;) Why don’t you go looking for porn or something?:eek: – Nermal
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January 28, 2004 at 4:50 am