Thank you. You're correct the PPP rates doesn't reflect the exchange rates, It's based on market basket of common goods. According to the Wiki[1], >> Ideally

Thank you. You're correct the PPP rates doesn't reflect the exchange rates, It's based on market basket of common goods. According to the Wiki[1], >> Ideally, a computer in New York and in Hong Kong should have the same price. If its price is 500 US dollars in New York and the same computer costs 2000 HK dollars in Hong Kong, PPP theory says the exchange rate should be 4 HK dollars for every 1 US dollar. [1] https://en.wikipedia.org/wiki/Purchasing_power_parity#Conversion https://en.wikipedia.org/wiki/Purchasing_power_parity#Conver...