The average undervaluation for the Malaysia

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Name:
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1. Use the BigMac Index for these 3 currencies to state if they overvalued or
undervalued compared to their PPP value during the same period on January of
every year and explain if the FX rate is moving towards its parity value as
predicted by the PPP theory.
Using the Big Mac the three currencies are either massively undervalued or overvalued
compared to the PPP in the same period. Overvaluation and undervaluation with respect to
PPP is the cost that equalizes a basket of goods in the market between two countries. In this
case, it is the US, Malaysia, South Africa and Uruguay. This represents the PPP value of the
US dollar with respect to the Malaysian Ringette, the South African Rand and the Uruguayan
Rupee.
Big Mac
Price
Exchange Rate
2017
2018 2019 2020
United states ( Dollar)
MYR/USD
4.175 - - -
Malaysian Ringgit 4.3244 3.9080 4.143
6
South Africa ( Rand)
ZAR/USD
13.224 11.849. 14.23
2
Uruguay UYU/USD
`
28.083 28.299 28.23
6
MYR/USD
The Indian rupee is massively undervalued in comparison to the USD. Since 2016, the