Clipping of news on Brazilian Culture, Law and Citizenship
27/07/2012
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Lunch costs US$ 4.94 in the country and Hong Kong is the cheapest, US$ 2.13.
Magazine 'The Economist' use index to calculate prices of currencies against the dollar.
According to the Big Mac index, the real is valued more than 10% against the dollar, and has the fourth most expensive Big Mac in the world, which costs US$ 4.94. The index is calculated by the British magazine "The Economist" and was released on Thursday (26).
According to the publication - one of the most respected publications in economics and business in the world - the index takes into account the purchasing power parity, ie the money of a country buys to calculate the value of the exchange rate. The difference is that the Big Mac index only calculates the amount needed to buy a Big Mac snack, while the calculations consider a basket of traditional products.
Because it is present in over 120 countries, the product-symbol of the proliferation of fast-food culture is considered a good barometer of how the consumer can purchase at each site.
Thus, the exchange rate is calculated from the price of Big Mac in each country. In Brazil, lunch costs US$ 4.94, while in Russia, only US$ 2.29. The Big Mac is cheaper bought in Hong Kong for U.S. $ 2.13 and is the most expensive of Venezuela of U.S. $ 7.92.
That is, with an equal amount to buy more Big Mac in Hong Kong than in Brazil, which shows that the Hong Kong dollar is undervalued and is real expensive. Why China has the cheapest Big Mac in the world, according to the index, the yuan is the most undervalued currency, is more than 50% below the U.S. dollar. With the most expensive Big Mac in the world, Venezuela has the most valued currency, the bolivar is 83% above the U.S. dollar.
The index estimated the value of currencies against the dollar and the price of Big Mac in 18 countries, it is produced for over 25 years by the magazine.
Source: G1
Our news are taken in full of our partner sites. For this reason, we can not change the content of these up in case of typing errors.
This article was translated by an automatic translation system, and was therefore not reviewed by people.