{"id":150197,"date":"2010-01-07T09:48:00","date_gmt":"2010-01-07T14:48:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/mcdonalds-thinks-the-yuan-should-double-in-value-2010-1"},"modified":"2010-01-07T09:48:00","modified_gmt":"2010-01-07T14:48:00","slug":"mcdonalds-the-yuan-will-double-in-value-and-the-safe-haven-currencies-will-collapse","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/150197","title":{"rendered":"McDonalds: The Yuan Will Double In Value And The Safe-Haven Currencies Will Collapse"},"content":{"rendered":"

Whatever the pegged yuan-dollar rate may be, have little doubt that a $65 billion company like McDonald’s does its own homework on currencies. The Chinese yuan is now a whopping 50% undervalued according to the latest Big Mac Index.<\/p>\n

Economist:<\/a> The most overvalued currency against the dollar is the Norwegian kroner, which is 96% above its PPP rate. In Oslo you can expect to pay around $7 for a Big Mac. At the other end of the scale is the Chinese yuan, which is undervalued by 49%. The euro comes in at 35% over its PPP rate, a little higher than half a year ago. (Via Abnormal Returns<\/a>)<\/p>\n

It’s interesting to see the Danish Kroner and Swiss Franc significantly over-valued. Viewed as a safe haven currencies these days, perhaps they’ve become too much so.<\/p>\n

\"Big<\/p>\n

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