Which of the following countries has the most undervalued currency according to the Big Mac index?

The Big Mac Index is an informal way to measure the purchasing power parity (PPP) between two currencies by comparing the price of a Big Mac in different countries. When a currency is undervalued according to this index, it means that the price of the Big Mac is significantly lower in that country compared to the price in the United States (considered the benchmark).

In the case of China, the Big Mac index often indicates that the Chinese yuan is undervalued relative to the U.S. dollar. This is attributed to a combination of factors, including China's economic policies, currency controls, and a generally lower cost of living compared to the U.S., which leads to cheaper local prices for goods, including the Big Mac.

The reason China stands out in this context is that many economic analyses and the Big Mac Index itself have pointed towards a significant difference between the expected exchange rate (based on purchasing power parity) and the actual market exchange rate. This suggests that the Chinese yuan has room to appreciate, hence being characterized as undervalued.

On the other hand, the other countries listed, while they may also have variations in currency valuation, do not typically show the same level of consistent undervaluation as China within the context of the Big Mac Index