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The Exchange Rates

as of Dec 05, 2013 09:54 UTC

US Dollar

1.00 USD

Euro

0.735248

British Pound

0.611546

Indian Rupee

61.799256

Australian Dollar

1.109751

Canadian Dollar

1.066838

Emirati Dirham

3.672906

Swiss Franc

0.901852

Chinese Yuan Renminbi

6.091691

Malaysian Ringgit

3.228221

New Zealand Dollar

1.221350

South African Rand

10.499814

South Korean Won

1060.528277 In America $1 can buy you… McDonalds Premium Roast Coffee

14.5 Oz can of Vegetable Medley

125 Styrofoam Plates

20 sq. ft. of Giftwrap

A Box of Crayons

7 lb. Bag of Cat Litter

A Lottery Ticket

A Newspaper

A Box of Bandages

A Box of Tissues

Antibacterial Spray Cleaner

6 pack of 16.9 oz Bottled Water

2 Yellow Legal Pads The Big Mac, an International Comparison

1986: The Economist published “The Big Mac Index” a lighthearted approach to analyzing the difference between actual prices and exchange rates.

Average price of a Big Mac in America in July 2013 was $4.56. What “Implied” Exchange Rate Is: Take China for example. You have the actual price a Big Mac sells for in China… 16 Yuan… or $2.61. But the actual exchange rate of dollar to Yuan is 6.13 to 1. This means that if China sold Big Macs solely on the basis of the actual exchange rate, it would cost more than 16 Yuan. They don’t. They are undervaluing it by 42.8 percent. So… by that measure…the implied exchange rate is 3.51 yuan to 1. China

Big Mac Price: $2.61 (Yuan 16.00)

Actual Exchange Rate: 6.13 Yuan : $1 (What the exchange rate actually is.)

Implied Exchange Rate: 3.51 Yuan : $1 (What you’d think the exchange rate would be based on the price)

Undervalued by: 42.8% India

Big Mac Price: $1.50 (Rupee 90.00)

Actual Exchange Rate: 59.98 Rupees : $1

Implied Exchange Rate: 19.75 Rupees : $1

Undervalued By: 67.1% Mexico

Big Mac Price: $2.86 (Peso 37.00)

Actual Exchange Rate: 12.94 Pesos : $1

Implied Exchange Rate: 8.12 Pesos : $1

Undervalued By: 37.3% Sweden

Big Mac Price: $6.16 (SKr 41.61)

Actual Exchange Rate: 6.76 SKr : $1

Implied Exchange Rate: 9.13 SKr : $1

Overvalued By: 35.1% Norway

Big Mac Price: $7.51

Actual Exchange Rate: 6.13 Kroners : $1

Implied Exchange Rate: 10.10 Kroners : $1

Overvalued By: 64.7%

*Exchange rates calculated July 2013. In Zimbabwe, a hamburger that costs $1 in U.S. would cost up to $15 in U.S. dollars (the country adopted the U.S. dollars in 2011) What is PPP?

PPP stands for Purchasing Power Parity. Example: If a soccer ball costs $10 in the U.S., it should cost $7.40 in France when the exchange rate is .74 to $1. Effectively, both cost $10.

The relative version of PPP is calculated as: Where: ”S” represents exchange rate of currency 1 to currency 2 ”P1″ represents the cost of good “x” in currency 1 ”P2″ represents the cost of good “x” in currency 2 Around the World, $1 U.S. will buy you…

Kenya: $1 buys eight cups of milk

Bangladesh: $1 buys 1 dozen eggs

United Kingdom: $1 buys a copy of The Sun newspaper

Vietnam: $1 buys 3 pairs of flip flop sandals

Colombia: $1 buys a cup of coffee and 2 cookies

Denmark: $1 buys a liter of Milk

Turkey: $1 buys 3 bottles of Water

Russia: $1 buys 1kg of Apples

Peru: $1 buys 3 ice cream cones

Croatia: $1 buys 3kg of Potatoes

Belgium: $1 buys 3 cans of baked beans

Korea: $1 buys three songs at a Karaoke club

Austria: $1 buys a freshly baked Kornspitz

India: $1 buys a full meal of boiled rice, dal, vegetables, pickles, and chutney Commodities (what you could get for $1)

Crude Oil: 0.4316 gal

Heating Oil: 0.326 gal

Gold: 0.000814 troy ounces

Silver: 0.0516 troy ounces

Corn: 0.232 bushels or 7.424 lbs



Sources: http://www.bloomberg.com/energy/

http://en.wikipedia.org/wiki/Barrel_(unit)#Oil_barrel

http://www.familydollar.com/

http://www.fastfoodmenuprices.com/mcdonalds-prices/

http://www.thedollartree.com/

http://www.economist.com/content/big-mac-index

http://www.x-rates.com/table/?from=USD

http://www.investopedia.com/terms/p/ppp.asp

http://www.dogoodbuy.us/blogs/news/3765162-how-far-does-a-us-dollar-go-around-the-world#

http://www.lonelyplanet.com/asia/travel-tips-and-articles/76028

http://blog.hostelbookers.com/travel/1-usd-around-world/

http://money.cnn.com/data/commodities/