Zloty undervalued by dollar

6th January 2012

The Polish zloty is currently one of the most undervalued currencies against the dollar in Europe, new reports claim.

According to TVN24, The Economist’s ‘Big Mac index’ - a yearly system which compares the price of the world-famous burger in over 100 different countries to measure different market values - shows that the zloty is undervalued by the US currency by 43 percent.

The price of a Big Mac currently sits at around PLN 8.80 (USD 2.55) in Poland meaning that the cost is approximately 43 percent less than customers can expect to pay in the US.

This result is one of the worst results in Europe - second only to the Russian rouble.

However, experts claim that the zloty has “great potential” to increase in value this year, with the nation’s economy faring well in comparison to its European neighbours.

“Poland’s economy is performing better than others in the region and this should be reflected in the currency’s value,” says Juraj Kotian, an economist for Erste Bank.