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According to the Economist’s “burgernomics,” the Swiss Franc is the most overvalued currency in the world. The publication’s Big Mac Index compares the price of the McDonald’s burger in 100 countries across the world in order to compare the value of currencies. And, a Big Mac in Switzerland costs $6.81 compared to the $4.20 you’d pay for one in the U.S. The American cost is used as an average by the Economist for this index.
That means that if we want to take the Big Mac Index as the ultimate truth, the Swiss Franc is 62 per cent overvalued.
Last summer, the Swiss National Bank promised that it wouldn’t let the Franc rise a certain level above the Euro, eventually resulting in the SNB intervening to stop the Franc surging too much.
European nations topped the index, with Norway, Sweden and Denmark also being among the nations with the top five most expensive Big Macs.