According to the hypothesis on which the index is based, the same goods should cost the same in all countries, and if this does not happen, then the local currency rate is undervalued or overvalued.
According to the magazine, in January 2021, a Big Mac in the United States cost an average of $ 5.66, while in Russia its price is 135 rubles.
To equalize the cost of burgers, the dollar must cost 23.85 rubles (in reality, more than three times more).
Thus, experts calculated that the ruble exchange rate is undervalued by 68%, since one Big Mac in Russia can be bought for $ 1.81, not $ 5.66.
According to their estimates, only the Lebanese pound is undervalued by 68.7%.
In January 2019, The Economist reported that the ruble was undervalued by 70% compared to the dollar.