Thursday, January 29, 2015 5:55 AM / FDC
“The true value of the naira based on burgernomics today is N223.48/$ (N214.5/$ in July 2014)”
First it was the falling price of oil, then it was the dwindling value of the naira. But this is not peculiar to Nigeria, e.g the Russian ruble has lost 71.44% in three months. Therefore, what will the naira exchange rate be at Easter time?
'Burgernomics' is an economics term made popular by the Big Mac Index published by The Economist. Burgernomics makes reference to the idea of the Big Mac PPP, which examines the purchasing power parity between nations, using the cost of a Big Mac as the benchmark. The Big Mac index was first published in 1986 as a tongue-in-cheek example of PPP across nations.
In simple terms, Burgernomics is the formula for determining the exchange rate of a country by dividing the price of a Big Mac hamburger in New York by the price in your country. This riddle was answered at the LBS breakfast session yesterday by Bismarck Rewane and the FDC team.
We present you with their thoughts in this presentation.
Kindly Download the PDF presentation HERE