According to the latest Big Mac Index from The Economist, Ukraine’s currency, the hryvnia, remains sharply undervalued against the U.S. dollar. The index estimates that, based on purchasing power parity (PPP), the dollar should trade at just 22 UAH—far below the current official exchange rate of 41.81 UAH per dollar. This means the hryvnia is undervalued by 47.5%.
The Big Mac Index compares the price of a McDonald’s Big Mac in different countries as a light-hearted but insightful measure of currency misalignment. In Ukraine, a Big Mac currently costs 132 UAH, while the same burger in the U.S. sells for $6.01. When adjusted for local prices, the PPP-based exchange rate comes out to 21.96 UAH/USD.
Despite this significant undervaluation, the hryvnia’s standing in the global index has improved slightly, moving from 6th to 8th place among the most undervalued currencies. It now sits alongside the Egyptian pound, Indian rupee, Taiwanese dollar, Vietnamese dong, Argentine peso, and South African rand—all of which are considered undervalued relative to the U.S. dollar.
First introduced in 1986, the Big Mac Index has become a quirky yet globally recognized tool for comparing currencies. While it doesn’t replace official economic analysis, it offers a relatable way to visualize disparities in global cost of living and currency strength.
For Ukrainians, the new data is both revealing and frustrating: their money buys far more at home than abroad, and the undervaluation may reflect deeper structural and geopolitical pressures beyond simple economics.
