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The Big Mac proved popular and it was added to the menu of all U.S.

It was designed to compete with Big Boy Restaurants' Big Boy hamburger Eat'n Park was the Pittsburgh area's Big Boy franchisee at the time. The Big Mac debuted at Delligatti's Uniontown, Pennsylvania restaurant in 1967, selling for US$0.45 (equivalent to $3.49 in 2020). The third name, Big Mac, was created by Esther Glickstein Rose, a 21-year-old advertising secretary who worked at McDonald's corporate headquarters in Oak Brook, Illinois. The Big Mac had two previous names, both of which failed in the marketplace: the Aristocrat, which Americans found difficult to pronounce and understand, and Blue Ribbon Burger. It was invented in the kitchen of Delligatti's first McDonald's franchise, located on McKnight Road in suburban Ross Township. The Big Mac was created by Jim Delligatti, an early Ray Kroc franchisee, who was operating several restaurants in the Pittsburgh area. 8 Nutritional values per geographical location.3.1 The " Two all-beef patties." slogan.The key thing to remember is that the Big Mac Index is an accurate indicator of the fundamental value of currencies, and traders can benefit from its use in trading. 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. 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%. The most relevant Big Mac Index so far (as of January 2022) is presented in the table below.