The Economist’s Big Mac Index, which using the prices of McDonald’s Big Mac burgers, has since 1986, been used to determine whether currencies are over, or undervalued, indicates that the Rand is 62% cheaper than it theoretically should be against the US Dollar. A Big Mac costs around R33.50 in South Africa and $5.71 in the US which means the implied exchange rate is R5.92/$, with the difference between this and the actual exchange rate of R15.52/$ suggesting the Rand is 61.9% undervalued.