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Dollar | Big Mac Index: Where is Peru located after the devaluation of the Peruvian Sun | Course | Ekonomista | Purchasing power parity Economy | Peru



The Big Mac IndexIt is published every six months by the British magazine & # 39; The Economist & # 39;, which in its latest edition showed it Most currencies are underrated against the dollar; that is, they are worth less and that's why the goods are cheaper than the economies with the US dollars.

The Peruvian sun it recorded an underestimation of 44.3%, however, it was stronger than Argentine peso (-50%) or Mexican peso (-53.9%).

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In this indicator, the classic hamburger of McDonald's used as a comparative value purchasing power parity between the different currencies of the world. This economic tool suggests that it's time consuming course should move towards a rate which is equal to the price of a identical base basket in any country; in this case a hamburger. Consequently, the notion of this concept says that long-term good should cost the same in all countries.

Be the product that is produced identical shape in more than 100 countries "Big Mac Index" It was presented as an informal guide, without academic or scientific pretensions, to be known price level of each country.

The journal based its calculations at the price of S / 10.50 Big Mac in Peru and $ 5.74 in the United States. The implicit course– What is the consequence of the price split between the price in dollars – what the indicator suggests is S / 1.83 per dollar. This means that the difference between the exchange rate of the Peruvian currency and the real exchange rate (S / 3.29 per dollar) indicates that local currency is underestimated in relation to the banknote.

The diagnosis of the index confirms nausea Peruvian sun against the dollar, where an American citizen can buy Big Mac in Peru cheaper (44.3%) than in your country. This is not something new; However, this indicator allows us to know how much less or less domestic currency is stronger than other currencies. In other words, how much more do you need to buy a dollar?

It can be seen (see graph below) that it is between 2010 and 2013 Peruvian sun I've been less underestimated, which means that in those years the Peruvian currency was closer to the same value of the foreign currency. In the coming years, this is being watched a significant reduction in the vicinity of underestimation of 50%.

The only year in which Peruvian currency it was very close to the balance, i.e. that it is worth the same as the dollar, (only 5.3% overestimated) was in July 2010.

REGIONAL REVIEW
Among the economies of the countries in the region, The Economist & # 39; calculates index for 11 countries of Latin America. Uruguay it was the country with the strongest currency (the Uruguayan peso is only 18.8% understated compared to the dollar), and then follows Brazil (-19.9%).

The remaining coins always showed an underestimation of more than 30% Costa Rica with (-31.4%), Chile (-33.3%) or Colombia (-35.8%). Among the weakest regional currencies were currencies Argentina (-50%) and Mexico (-53.9%).

Globally, among the five countries where you can buy a cheaper hamburger, Russia with a 64.5% sub-base in the ruble, Malaysia with 62.8% in ringgit, South Africa with 61.9% in the Rand and Romania with a leu less than 61.6 %.


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