The Economist: Three Latin American Currencies are Overvalued

The currencies of three South American countries -Brazil, Colombia and Argentina are the most overvalued in a list of 48 countries worldwide, according to a revised version of an index of the British magazine The Economist, which compares the currencies to the price of a Big Mac.

This average contrasts the price of a Big Mac in different countries with the same product in the United States, comparing them with the exchange rate in the market.

Thus the Brazilian real is overvalued by 149%, Colombian peso by 108% and Argentinean peso by 101%, figures show in the index, which uses the U.S. dollar as a benchmark and this year has considered for the first time the gross domestic product per person.

The controversial rate celebrates a quarter century. According to the latest issue of the magazine, “Big Mac index” has become a global standard and it has been included in several books on economics.” (FO)

IN ECUADOR:  Big Mac = $ 3,30  /    Big Mac Combo =  $4,70              IN USA:  Big Mac = $ 4,07

Source: BBCMundo.com/ Daily El Universo