It makes exchange rate differences more understandable to the normal citizen.
It also makes for an interesting glance as it may indicate if the currency is being pegged to another currency.
You can also derive a number of things from this like how long you have to work to earn a big mac and so on.
Undervalued currencies are also somewhat the from the countries that export a lot. As such that can also be derived.
Although the dollar may be the fiat currency you can compare two different currencies by converting them to dollars.
Big mac index is a interesting number. In addition to big mac index, I always find the ratio of income to the price of some particular goods or a set of goods a better measure of income than the pure number in dollars.
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