The Economist: Most World Currencies Devalued Against Dollar
1 Min Read
Britain's "The Economist" says most world currencies devalued against the dollar and says that this also applies to Arab currencies.
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The Economist
The index showed that the Lebanese Pound was the most devalued globally, by over 70%, followed by the Russian Ruble in second place at 60%.
The Economist has been making these calculations since 1986, with the presupposition that the cost of a Big Mac, which is composed of bread, cheese, meat, and vegetables, can act as an international alternative for several goods that can differ from one country to another.
Since McDonald's is international, the Big Mac index can give a more accurate idea of the difference between world currencies and the US dollar.
Experts say that using this approach, one can observe how world currencies are devalued, except the Venezuela Bolivar, the Swiss Franc, and the Swedish and Norwegian Kroner.
On the other hand, the Euro, British Pound, Japanese Yen, and Chinese Yuan devalued respectively under their original price by 11.1%, 15.9%, 37.2%, and 38.8%.
