Country South Africa Botswana Ghana Kenya Malawi Mauritius Namibia Zambia Zimbabwe Beer Castle Castle Star Tusker Carlsberg Phoenix Windhoek Castle Castle Local Currency Rand Pula Cedi Shilling Kwacha Rupee N$ Kwacha Z$ Price in Currency 2.30 2.20 1,200.00 41.25 18.50 15.00 2.50 1,200.00 9.00 Price in Rand 2.94 3.17 4.02 2.66 3.72 2.50 3.52 1.46 Implied PPP Rate 0.96 521.74 17.93 8.04 6.52 1.09 521.74 3.91 Spot Rate 0.75 379.10 10.27 6.96 4.03 1.00 340.68 6.15
The Beer Standard. In 1999, The Economist reported the creation of an index, or standard, for the evaluation of African currency values using the local prices of beer. Beer, instead of Big Macs, was chosen as the product for comparison because McDonald’s had not penetrated the African continent beyond South Africa, and beer met most of the same product and market characteristics required for the construction of a proper currency index. Investec, a South African investment banking firm, has replicated the process of creating a measure of
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