Big Mac Index: Dollar equals 23.31 EGP
The "Big Mac" Index, published by The Economist magazine, shows that the Egyptian pound is undervalued relative to the US dollar. The estimated fair value of the currency is around 23.31 pounds per dollar, while the actual exchange rate is 50.53 pounds, indicating that the Egyptian pound is undervalued by approximately 53.9%. The index relies on comparing prices close to the cost of living across different countries through the price of a Big Mac, which costs 145 pounds in Egypt. The results demonstrate that the gap between the real price and the current valuation reflects a significant weakness of the Egyptian currency compared to its true purchasing power, suggesting a substantial undervaluation that does not align with the country’s actual economic strength.
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