Swiss top Big Mac index with ‘meaty’ franc

Switzerland has the world’s most overvalued currency, according to The Economist's 'Big Mac Index', a study comparing the price of McDonald’s most famous burger with the cost of living in 100 countries.

Swiss top Big Mac index with 'meaty' franc

“According to burgernomics, the Swiss franc is a meaty 62 percent overvalued,” says The Economist.

A Big Mac in the Alpine country costs 6.50 francs ($6,81) compared to an average of $4.20 in the US.

“The exchange rate that would equalise the price of a Swiss Big Mac with an American one is SFr1.55 to the dollar; the actual exchange rate is only 0.96,” The Economist says. 

Norway and Sweden trail Switzerland on the podium for the countries with the most overvalued currencies. From the bottom up, India, the Ukraine and Hong Kong have the most undervalued bank notes.

The Big Mac index is based on the theory of purchasing-power parity, explains The Economist. Exchange rates should adjust to equal the price of a basket of goods and services in different countries, but this is not always the case.

In order to find out the level of appreciation of currencies in relation to the US dollar, it compares the price of the fast-food chain’s star product, which is made from two basic products (bread and meat), with the cost of the same product in another country.

In the case of the euro, the common European currency has lost ground against its US counterpart since July, when the last Big Mac index was presented. Six months ago, the euro was 21 percent overvalued against the dollar, compared to a 6 percent overvaluation today.

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Swiss McDonald’s serves up pornography (again)

Customers at a McDonald’s in Switzerland were taken aback recently when a television in the fast food restaurant showed pornographic content.

Swiss McDonald's serves up pornography (again)

Around 30 guests were eating at the McDonald’s in the canton of Schwyz at the time, a reader of Swiss tabloid Blick told the newspaper.

The television screen displayed explicit ads for chat sex websites and then even showed a soft porn film, the diner said, adding other customers must have ignored the situation out of embarrassment.

Staff were informed but clearly nothing was done, the reader said.

Read also: Cleaners accidentally throw away Swiss artists 'Unhappy meal'

This is not the first time a McDonald’s restaurant in Switzerland has shown pornography on a television screen. A similar 2014 incident in Zuchwil in the canton of Solothurn went global after international media outlets picked up the story.

To prevent such incidents, staff at Swiss McDonald’s restaurants are instructed to only select channels such as Eurosport which do not run pornographic content.

But during the recent incident in the canton of Schwyz, the television was tuned to German sports broadcaster Sport1, which does show pornography late at night. 

The incident was “highly regrettable” and staff would once again be made aware of the rules,” a McDonald’s spokesperson told Blick.

Read also: Switzerland STILL has the priciest Big Macs in the world