Egyptian pound undervalued by 56% – Big Mac Index shows

Egypt NewsFeaturedNews
By Nada Ali
The Big Mac Index compares the prices of McDonalds burger across the world, The Economist says, “as a lighthearted guide to whether currencies are at their ‘correct’ level.” Photo Credit: Shutterstock

The Big Mac Index indicates that the Egyptian Pound is undervalued against the dollar. A Big Mac is priced at 120 pounds in Egypt while being sold for $5.69 in the US, implying an exchange rate of 21.09 pounds per dollar.

However, the current exchange rate is over 48 pounds per dollar, showing a discrepancy of around 56.6 per cent.

By comparing the price of a Big Mac burger in different countries, the index offers insights into purchasing power parity.

Attribution: The Economist data

Leave a comment