RUB most undervalued major currency
On January 12 the Economist's "Big Mac" Index proved that the RUB is threefold undervalued. Judging by market exchanges it ought to be worth 24 to the USD and not 73 to the USD, as it is.This index accounts for differences in the standard of living according to GDP per head. The RUB is the most undervalued of the 55 currencies surveyed.A Big Mac is USD 1.81 in Russia and USD 5.66 in the USA. The RUB has been undervalued in comparison to the USD since 2012. The RUB fell 20% in 2020. Oil prices. the Biden win and the reaction to Navalny's poisoning all account for this.The RUB's weakness is also due to the drop in outlook for the Russian fiscal rollout versus a year ago.