True worth of Kuwaiti dinar 21.5% higher than market price

• The Big Mac Index highlighted other Arab countries with gaps between real and official exchange rates, including Jordan (39.1%), Oman (31.4%), Qatar (28.8%), and Bahrain (22.1%).

The Big Mac Index by The Economist revealed that several Arab currencies, including those of Egypt, Lebanon, and the Gulf countries, are undervalued despite their strength against the dollar, Al Rai reported.

The report indicated that although the Kuwaiti dinar is among the strongest currencies against the dollar, the index reveals that its real value is about 21.5% higher than its current price. Similarly, the UAE dirham is 15.4% higher, and the Saudi riyal is 12.5% higher than its current value.

It also highlighted that the real value of the Egyptian pound against the dollar is approximately 53.6% higher than its current price of 50.3 pounds per dollar, meaning its true value is around 23.34 pounds per dollar.

The index calculates the real exchange rate by dividing the price of a Big Mac in a country’s national currency by its price in the U.S. in dollars.

The list also included other Arab countries, such as Jordan, where the gap between the real and official exchange rates is 39.1%, Oman (31.4%), Qatar (28.8%), and Bahrain (22.1%).

Additionally, the index noted that despite being the weakest currency in the world, the Lebanese pound is still 7.4% higher in real value than its current price.