Analysis: Draw Media
🔹 The depreciation of the dinar reduces the purchasing power of Kurdistan Region salary earners by more than $161 million per month.
🔹 The total monthly salary bill for Kurdistan Region employees is 951 billion and 666 million IQD. Changes in the dinar-to-dollar exchange rate cause significant direct losses to employees’ purchasing power and economic activity in the Region.
🔹 If an employee earns a monthly salary of 1 million IQD, their actual monthly loss amounts to $169, representing a 22.35% decline in purchasing power. This is equivalent to a 220,000 IQD reduction in purchasing power for that employee.
First: The Impact of the Decline in the Value of the Dinar on the Total Salaries of Kurdistan Region Employees
Comparison of Different Salary Value Levels
1. Baseline level — previous Central Bank exchange rate: 1,320 IQD per dollar
The Region’s total monthly salary bill was equivalent to $720 million and $959,091, representing the baseline level of employees’ purchasing power.
2. Second level — current official Central Bank exchange rate: 1,520 IQD per dollar
As the exchange rate rises to 1,520 IQD per dollar, the value of the total salary bill falls to $626 million and $96,053.
Official monthly loss: $94 million and $863,038, representing a 13.16% decline in purchasing power.
Loss in dinar terms: equivalent to 123 billion and 716 million IQD in lost salary value at the official exchange rate.
3. Third level — actual free-market exchange rate: 1,700 IQD per dollar
While daily goods and necessities in the market are priced according to the free-market dollar exchange rate, the value of the employees’ total salaries falls to $559 million and $803,529.
Actual monthly loss: $161 million and $155,561, representing a 22.35% decline in purchasing power.
Loss in dinar terms: equivalent to 209 billion and 366 million IQD in reduced purchasing power for salary earners.
Second: The Impact of the Decline in the Value of the Dinar on an Individual Employee Earning 1 Million IQD
Comparison of Different Salary Value Levels
1. Baseline level — previous Central Bank exchange rate: 1,320 IQD per dollar
The employee’s monthly salary was equivalent to $758. This represented the baseline level of the employee’s purchasing power in the past.
2. Second level — current official Central Bank exchange rate: 1,520 IQD per dollar
As the exchange rate rises to 1,520 IQD per dollar, the value of the employee’s salary falls to $658.
Official monthly loss: $100, representing a 13.16% decline in purchasing power.
Loss in dinar terms: equivalent to 130,000 IQD in lost salary value at the official exchange rate.
3. Third level — actual free-market exchange rate: 1,700 IQD per dollar
While daily goods and necessities in the market are priced according to the free-market dollar exchange rate, the value of the employee’s salary falls to $588.
Actual monthly loss: $169, representing a 22.35% decline in purchasing power.
Loss in dinar terms: equivalent to a 220,000 IQD reduction in purchasing power for the employee.
