EXPERTS: “SECURITY GUARANTEES” ARE A PREREQUISITE FOR THE RETURN OF INTERNATIONAL COMPANIES AND MISSIONS TO IRAQ
(Mnt Goat: This article could not articulate any better why Trump wants these militia and factions out of Iraq. Do you see it now? Do you see why this issue of the PMF is of high priority and on the CBI list of the top five issue prior to any Reinstatement? )
Efforts to restore international activity in Iraq face significant challenges, with experts and specialists linking the return of foreign companies to certain conditions.
Diplomatic missions should obtain tangible security guarantees.
These demands come in the wake of a wave of withdrawals following attacks by armed groups on the headquarters of those missions and companies. During a period of escalation that lasted forty days. Experts confirm that the departure of these companies caused serious damage to Iraq’s national income and foreign relations.
This necessitates opening direct government communication channels to provide the necessary assurances for her return. In the same vein, The responsibility lies with the government to rebuild investor confidence. It is worth noting that the crisis worsened after embassies and diplomatic centers were subjected to daily attacks by missiles and drones.
Daily Iraqi dinar updates with insights from popular dinar gurus.
The Exchange WILL NOT be a capital gains taxable event and here's why: For US tax purposes: Section 988: The default treatment for foreign exchange (forex) gains and losses for US tax residents is Section 988.
Under this section, forex gains and losses are treated like ordinary income, not capital gains. This means that gains are taxed as ordinary income, and losses are deductible as ordinary losses, subject to certain limitations
----
💼 U.S. Tax Perspective on Forex Exchanges (Section 988 Explained)
According to U.S. tax rules, a currency exchange event (such as forex gains from a foreign currency transaction) is NOT treated as a capital gains event in most cases. 🇺🇸💱
Instead, it falls under Section 988 of the Internal Revenue Code 📜
📌 Key Point:
Under Section 988, foreign exchange gains and losses are treated as ordinary income or ordinary losses, NOT capital gains.
💰 What this means in practice:
📈 Any profit from currency exchange is taxed as ordinary income
📉 Any loss can be deducted as an ordinary loss (subject to limitations)
🧾 It does NOT fall under long-term or short-term capital gains tax rules
⚖️ Why this matters:
This classification is important because:
Ordinary income tax rates may differ from capital gains rates 💵
Tax treatment depends on how the IRS defines the transaction, not investor expectations
It applies automatically unless a specific election is made under other IRS rules
🔎 Simplified takeaway:
In most forex-related cases, the IRS views currency exchange profits as income activity, not investment capital gains.
📊 Final Insight:
This is why some argue that currency exchange events are taxed differently than traditional investments, and why understanding Section 988 is critical for anyone dealing with foreign currency gains.
THE UNIFIED TREASURY RECOVERS TRILLIONS OF DINARS AND CLOSES THOUSANDS OF BANK ACCOUNTS
The unified treasury recovers trillions of dinars and makes tangible progress in controlling government accounts, as the Ministry of Finance announced the closure of 3,743 bank accounts and the recovery of billions of dinars from inactive accounts.
The Ministry of Finance announced on Wednesday that more than 3 trillion dinars and 333 million dollars have been returned to the public treasury account since the implementation of the unified treasury account.
A report from the Accounting Department at the Ministry of Finance stated that “the number of zero accounts that were closed in accordance with Cabinet decisions was (3743) bank accounts,” indicating that “the total amount recovered during the implementation of Decision No. (23581 of the year (2023) on inactive accounts that had been inactive for more than 5 years was 159 billion, 560 million, 226 thousand, 325 dinars, and in dollars 133 million, 866 thousand, 180 dollars.”
He added that “the amounts recovered from the dormant accounts of the public treasury amounted to 26 billion, 348 million, 90 thousand and 17 dinars, and in dollars 198 million, 304 thousand and 312 dollars,” noting that “the recommendations regarding the non-moving accounts belonging to the departments affiliated with the Ministry of Finance have been completed, as the total amount recovered for the public treasury amounted to (149220725960) dinars.”
The report explained that “the total amount recovered from the remaining balance of the unified treasury account for salaries for the year 2024, which is withdrawn monthly, amounted to large sums in dinars of 726990927864 dinars and in dollars of $458928, while other amounts were recorded relating to the remaining salaries for the year 2025 amounted to 299601275444 dinars and in dollars of $495790.”
Remaining operating expenses
He noted that “pending the end of the fiscal year on 12/31/2023, banks were instructed to withdraw the remaining operating expenses, and the total amounts withdrawn according to the unified treasury account amounted to large sums in dinars.”
The report indicated that “during the year 2025, banks began withdrawing amounts from the (old) operating expenses accounts into the unified treasury account, amounting to 293819265860 dinars.”
As part of organizing the work, after the end of the fiscal year on 12/31/2025, the cash liquidity for the operating accounts was withdrawn, while continuing to adopt the previous work mechanism to ensure the accuracy of matching between bank statements and central records.
The report confirmed that “the total amount recovered for the public treasury during the implementation of Resolution No. (24913) of 2024, related to central accounts that have not been active for more than five years, amounted to 34071023130 dinars and $9481.”
In a related context, the report explained “the implementation of the paragraph regarding the transfer of bank account balances for centrally funded entities that have not been held for five years, where an account was opened with the bank in the name of the Ministry of Finance/Accounting Department, and the necessary procedures were completed in coordination with the banks,” noting that “the number of accounts is 121 with an amount of 48958677591496 dinars and in dollars 1644977 dollars.”
Implementing the unified treasury system
She also noted “the continuation of work on implementing the unified treasury system, with advanced steps taken to address inactive accounts, where data was collected, audited and submitted to higher authorities to make the necessary decisions regarding them,” pointing out “the completion of control and oversight procedures for bank accounts, by contacting government agencies to provide a comprehensive database of the accounts they have open, whether paper or electronic.”
He stated that “in implementation of paragraph (Second 3 (a) – (b) of Resolution 24913 of 2024, which included transferring the balances of bank accounts of self-financing entities that have been more than (5) years old and those that have not been (5) years old with banks to the account opened in the name of the Ministry of Finance / Accounting Department until the committees complete the work regarding their recommendations, and in light of that, our letter No. (49) was issued on 1/5/2025 to inform the banks to take the necessary action.”
The report confirmed “the follow-up and monitoring of balances that were transferred in accordance with Cabinet Resolution (24913) of 2024 to our accounts opened at the main branch of each bank that has inactive accounts. Our circular No. (24089 on 2025/8/25) was issued to provide us with a statement for each account.”
He explained that “with regard to the recommendations that were provided to us by the committees in the ministries and non-ministerial entities formed according to Resolution 23452 of 2023, paragraph (3) thereof, a unified database of accounts was prepared for the purpose of sorting and settling those accounts and sending them to the banks according to our circular No. (12477) dated 5/11/2025 for auditing and matching the inactive bank accounts belonging to the spending units and stating any observations on them. After the issuance of Cabinet Resolution No. (373) of 2025, which included the formation of a committee, Diwani Order No. (46) was issued regarding settling the issue of inactive accounts, whereby a committee was formed headed by the Financial Control Bureau and with the membership of the Accounting Department and the Rafidain and Rasheed Banks, and all the documents were handed over to the committee member from the Ministry of Finance, according to the note of the respected Director General.”
Tightening control and oversight
He explained that “in order to tighten control and oversight of bank accounts at spending units, our circular No. (29016 on 10/30/2024) was issued, followed by circular No. (34325) on 12/23/2024, which included the creation of a unified treasury account division in the financial department of the headquarters of each ministry or entity not affiliated with a ministry or governorate, as well as for the general administrations of government banks, to create a database of bank accounts opened with them and to update it periodically.”
He pointed out that “bank account databases were received for the purpose of auditing and cross-referencing them from some of the Unified Treasury Account branches that were created in ministries, non-ministerial entities, and governorates, along with the bank account databases, after they were sent to the Unified Treasury Account branches in government banks.”
He emphasized, “Regarding the comprehensive banking system and to demonstrate the extent of its application in government banks and their branches that have joined, and the number of unified treasury bank accounts in each branch, statistics have been prepared for the purpose of preparing this memorandum.”
He pointed out that “in order to complete the monitoring of the movement and balances of bank accounts at bank branches and to access fast and reliable information, an electronic platform was created between government banks and this division according to pre-planned stages, including:
The first stage includes the accounts for the unified treasury (salaries/operating expenses) according to the Excel model that we have prepared, which includes all the information that we see as necessary in the work of the unified treasury account, according to our circular (14192 on 2025/5/25).
The second phase is subject to the successful implementation of the first phase. Our letter No. (18309 on 7/8/2025) was issued, which includes directing government banks to upload government (current) accounts via the platform.
The third phase, after the successful completion of the second phase, will involve unifying the platforms after selecting the most suitable platform that best meets the work requirements. A ministerial order was issued to form the technical team, which was tasked with unifying the platforms according to a modern work mechanism, and it contributes to implementing the steps of the unified treasury account. Successive meetings have been held, and we are now in the semi-final stages of implementing the third phase.
development process
The fourth (targeted) stage is a developmental process that can be updated in the field of platforms or by adding any new work mechanism that is implemented according to the requirements of the work.
He continued, “Based on the request of the Investment Plan Department to provide them with the Investment Plan accounts to compare them with the accounts they have, our circular No. 31769 dated 11/2/2025 was prepared and directed to the banks to provide us with the accounts that they printed (my investment).”
He pointed out that “in order to resolve the non-active accounts and move towards advanced steps in the unified treasury account, and due to the existence of non-active accounts that appeared at the bank branches, our circular No. (26169 on 9/15/2025) and its successor (29404 on 10/12/2025) was issued to provide us with the non-active accounts. The data received by us was collected and verified, and it was submitted to the General Secretariat of the Council of Ministers/Office of the Secretary-General by virtue of letter No. (8558 on 4/13/2026) for the purpose of presenting it at the Council of Ministers session to issue a decision regarding it.”
The report concluded that “the total amount returned to the public treasury account since the implementation of the unified treasury account until the date of preparation of the report amounted to (3683869713303) dinars and (333134691) dollars only, while the number of zero bank accounts that were cancelled amounted to (3743) bank accounts.”
Daily Iraqi dinar updates with insights from popular dinar gurus.
Subscribe for more updates and breaking news.
We are not a registered investment adviser, broker-dealer, or bank.
🔗 Blog: https://dinarevaluation.blogspot.com/
🔗 Facebook: https://www.facebook.com/profile.php?id=100064023274131
🔗 Bluesky: https://bsky.app/profile/dinaresgurus.bsky.social
🔗 Telegram: https://t.me/DINAREVALUATION
In time we can look forward to a 1 to 1 ratio but not in the beginning...and not until the three major tasks that Iraq has to complete.
They have to control their currency, they have to be able to have an info of revenue coming in over and above the oil industry and they have to control the militants...Iraq must take care of these tasks before a currency adjustment can happen.
----
In the long term, it is possible to envision a 1:1 exchange rate scenario, but this would not occur in the early stages of Iraq’s monetary reform. Any meaningful currency adjustment depends on Iraq successfully completing three key national priorities. 🇮🇶💰
First, Iraq must achieve full control over its currency and monetary system 🏦.
This includes eliminating multiple exchange rates, reducing dependence on the U.S. dollar in local transactions, and strengthening the Central Bank of Iraq (CBI) so it fully controls money supply, reserves, and foreign exchange flows. Without this, any revaluation would lack stability.
Second, Iraq needs stronger revenue diversification beyond oil 🛢️➡️📊. While oil remains the main income source, long-term currency strength requires growing non-oil revenues such as customs, taxation, trade regulation, and digital financial systems. This creates fiscal balance and reduces exposure to oil price volatility.
Third, Iraq must improve state control over militias and illegal financial networks 🛑⚖️. As long as armed groups can exploit oil smuggling, dollar leakage, or parallel markets, the financial system remains weakened. Stronger rule of law and border control are essential for economic credibility and investor confidence.
Only when these three pillars—monetary control, diversified revenues, and internal security stability—are fully achieved can Iraq realistically move toward a stronger currency framework or long-term valuation improvement. 📈
In other words, a potential 1:1 exchange rate would not be an early-stage event, but the result of deep structural reform and long-term economic stabilization. ⏳
OIL DISCOVERED IN IRAQ WITH HUGE RESERVES NEAR THE SAUDI BORDER
An oil discovery has been announced in Iraq with reserves approaching 9 billion barrels, according to details obtained by the specialized energy platform, issued from Washington.
The announcement of the oil discovery within the “ Qarnayn ” area came during Oil Minister Hayyan Abdul Ghani’s reception on Wednesday, May 6, of a delegation from the Chinese company Zhenhua, in a move that supports Baghdad’s strategy to raise its production capacity to 6 million barrels per day by 2029.
During the meeting, developments in the work in the “Al-Qarnayn” exploration area, along with the East Baghdad South field, were discussed, in the presence of the Director General of the Central Oil Company, Muhammad Yassin.
The Minister of Oil confirmed the discovery of oil in Iraq in the Al-Qarnayn block, which was referred to the Chinese company as part of the fifth supplementary and sixth licensing rounds during 2024.
Abdulghani stressed the importance of accelerating the pace of work to achieve the goals of oil projects, in order to ensure the sustainability of crude oil production and maximize the benefit from associated gas.
Two Horns Field
The Al-Qarnayn field is the first exploration block to record an oil discovery within the blocks offered in the fifth supplementary and sixth rounds, demonstrating the great potential of undeveloped areas in Iraq, especially in border areas.
An oil discovery was made in Iraq in the Shams-11 exploratory well, which began drilling on January 10, 2026. On February 24, 2026, hydrocarbon reservoirs were reached with estimated reserves of approximately 8.8351 billion barrels.
The new oil discovery in Iraq is located within the (MUS) formation at depths ranging between 1916 and 1965 meters, with an initial production rate of approximately 3248 barrels per day.
The oil discovered in the Al-Qarnayn area is classified as light oil, which enhances its economic viability and ease of development.
Oil discovery site in Iraq
The Al-Qarnayn area is located in the southwest of the country within the borders of Najaf Governorate, along the Iraqi-Saudi border, and is considered one of the promising exploration areas, as it extends over an area estimated at about 8773 square kilometers.
The large geographical extent reflects additional opportunities for the existence of other potential reserves, opening the way for further exploration operations during the next phase.
The oil exploration, development and production contract for the block was signed on October 17, 2024 between the Middle Oil Company and North Petroleum International, wholly owned by the Chinese company Zhenhua, as part of the oil licensing rounds.
The contract came into effect on November 18, 2024, before operations were subsequently transferred to Qurnain Petroleum Limited, which took over management of the block starting from May 17, 2025, as the new operator of the project.
During the meeting, Zenhua reviewed the ongoing work stages, both in the Al-Qarnain area through the operating company, and in the East Baghdad South field, where EBS is working to increase production rates.
The company proposed the idea of rapid investment in the exploration block, which would contribute to accelerating the conversion of discoveries into actual production, and maximizing economic returns in the shortest possible time.
Daily Iraqi dinar updates with insights from popular dinar gurus.
Subscribe for more updates and breaking news.
We are not a registered investment adviser, broker-dealer, or bank.
🔗 Blog: https://dinarevaluation.blogspot.com/
🔗 Facebook: https://www.facebook.com/profile.php?id=100064023274131
🔗 Bluesky: https://bsky.app/profile/dinaresgurus.bsky.social
🔗 Telegram: https://t.me/DINAREVALUATION