What Do Big Macs Have To Do With How Much Money Is Worth? Guide

: If the burger is more expensive than in the U.S., the local currency is considered overvalued . Practical Example : In June 2024, a Big Mac cost in the U.S. and in the U.K.. The implied exchange rate was

might "go further" in a country like South Africa than in Switzerland.

The index calculates an "implied exchange rate" by dividing the price of a Big Mac in one country by its price in another (usually the United States).