The Economist's Big Mac index seeks to make exchange-rate theory more digestible. It is arguably the world's most accurate financial indicator to be based on a fast-food item. A stronger dollar translates into a weaker Rand and that affects buying power. Surprising as it may seem, this burger helps economists compare the buying power of different currencies - economists call it burgernomics. This burger is available anywhere in the world.
At R7 to the dollar a burger in the U.S. will cost you $2.50 which is about R17.50, but you can buy one in Johannesburg for only R9.40.
According to the Big Mac Index the burger sells at…
$3.00 in London
$3.97 in Switzerland
$1.35 in Russia (Just 2 cents more than the South African Big Mac)
( updated: 29/05/2000 )