Exchange rate movements remain a complex task, with various factors like inflation, interestrates, and geopolitical events influencing currency values. Numerous economic and statistical models have been developed to analyze and explain these movements. In this study, we utilize the unique and widely recognized Big Mac Index as a tool to investigate the validity of Purchasing Power Parity.

The data of this study is concluding using a monthly time series from 1998-01 to 2023-12 with unit root and Engle-Granger testing and from 2002-01 to 2019-12 with Engle-Granger testing for the macroeconomic factors such as CPI, unemployment rate, GDP per capita and policy rate, across six different countries 3 in Europa and 3 from Asia. Contrary to the expectations, the findings do not support the reliability of purchasing power parity. These results have significant implications for future research in the field of international trade and finance.