EconomyForex

Philippine Peso 46.9% undervalued against US Dollar

1 Mins read

The Economist’s Big Mac Index is based on the theory of purchasing power parity (PPP), which states that in the long run the exchange rates of any two economies should move towards the rate that would equalize the prices of an identical basket of goods. Using this approach for a Big Mac, one can estimate how much one currency is under- or overvalued relative to another. As of January 2023, a Big Mac costs $5.36 in the US compared to P155 in the Philippines, implying an exchange rate of P28.92 versus the dollar. Compared to the actual exchange rate of P54.44, this means that the peso is 46.9% undervalued.

Related posts
EconomyForex

‘Game-Changing Insights’: Dealers’ Business Forum ignites passion and purpose among partners

2 Mins read
By Jay Ann Bonghanoy It wasn’t just another seminar. For many dealers in the room, it marked a real turning point. On…
EconomyForex

‘Game-Changing Insights’: Dealers’ Business Forum ignites passion and purpose among partners

2 Mins read
By Jay Ann Bonghanoy It wasn’t just another seminar. For many dealers in the room, it marked a real turning point. On…
EconomyForex

Gov’t ready to extend fuel subsidies

4 Mins read
By Chloe Mari A. Hufana and Sheldeen Joy Talavera, Reporters PRESIDENT Ferdinand R. Marcos, Jr. on Wednesday said that fuel subsidies may…
Power your team with InHype
[mc4wp_form id="17"]

Add some text to explain benefits of subscripton on your services.

Leave a Reply

Your email address will not be published. Required fields are marked *