Big Mac Index: the dollar exchange rate in Ukraine should be 22 hryvnia
18 July 15:27
The Economist magazine has published an updated Big Mac index, according to which the dollar exchange rate in Ukraine is significantly overvalued – it should be about 22 hryvnias instead of the official 41.86 UAH/USD, [Komersant] reports.
According to the publication’s calculations, in July 2025, a Big Mac burger in Ukraine will cost 132 hryvnias (or $3.16), and in the United States – $6.01 (about 250 hryvnias). This difference indicates that the hryvnia is undervalued by 47.5%.
Thus, according to the “Big Mac index,” the fair exchange rate of the dollar against the hryvnia should be 21.96 UAH/USD.
The hryvnia was among the most undervalued currencies in the world, along with the currencies of Egypt, Indonesia, India, Taiwan, and Vietnam.
What is the Big Mac Index?
“The Big Mac Index has existed since 1986 and is used as an unofficial tool for comparing the purchasing power of currencies. It is based on the concept of purchasing power parity (PPP): if currencies are “fairly” valued, the same amount in different countries should provide the same purchase, for example, one McDonald’s Big Mac.
The burger was chosen as a universal commodity with the same composition in different countries.
Last year, the hryvnia was also among the most undervalued currencies, temporarily improving its position, but this year it has dropped again.
