When the Economist researched “happy meals in unhappy places” with its latest Big Mac index, it was able to find the cheapest burger in Lebanon.
In Lebanon, it costs the unprecedented price of 37,000 LBP for a Big Mac. But it’s priced at just $1.68. The implied exchange rate is around 6,549/USD, The Economist found. However, today, $1 = 22,000 LBP.
It’s a good deal for tourists since the Big Mac costs around $5.65 on average in the United States. But it’s a huge issue for Lebanese who have lost access to their dollars.
“Lebanon’s currency chaos is both a reflection of its economic disaster and a contributor to it,” The Economist wrote.
The Big Mac index determined that the Lebanese pound is the most undervalued currency in the world- 70.2% undervalued against the US dollar.
Following the Lebanese pound is the Russian rouble, which is undervalued 59.9% against the US dollar.