Using the Purchasing Power Parity (PPP) model, the naira is significantly undervalued. The PPP compares the cost of a basket of goods in two countries, estimating what the exchange rate should be to equalise prices. According to a member of BusinessDay's Board of Economics, who applied the PPP to Nigeria's current exchange regime, the Naira is undervalued by 23.35 percent (official rate) and 28.11 percent (parallel market). Based on her estimates, the real value of the Naira should be N1,158/$, not N1,551 or N1,611 as seen in the official and parallel markets, respectively.