Iraq Advances Economic Reforms Amid Expectations of Currency Stability Improvements

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⚠️ Iraq Oil & Sanctions Update — Key Takeaways 🇮🇶🛢️

 Clare 

 Article: "Economic Fury Targets Iraqi Oil Official, Iran-Backed Terrorist Militias in Iraq" 

Quote: "Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) increased economic pressure on Iran and its proxy militias in Iraq by designating...

Iraq’s Deputy Minister of Oil, who abuses his position to facilitate the diversion of oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq...The Iranian regime is pillaging resources that rightfully belong to the Iraqi people, said Secretary of the Treasury Scott Bessent. Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners.” 

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⚠️ Iraq Oil & Sanctions Update — Key Takeaways 🇮🇶🛢️

🔥 U.S. Economic Pressure Intensifies

• The U.S. Treasury’s OFAC has increased sanctions pressure on Iran and its proxy networks operating inside Iraq. 🇺🇸⚖️
• The action targets Iraq’s Deputy Minister of Oil, accused of facilitating oil diversion benefiting Iranian-backed groups. 🛢️🔗

🧾 Core Allegations

• Iraqi oil revenues are allegedly being redirected through corruption networks linked to Iran.
• Oil is reportedly being moved and sold in ways that bypass official Iraqi state control. 🚛💸
• These operations are said to fund Iran-aligned militias inside Iraq.

🗣️ U.S. Position

• Treasury Secretary Scott Bessent stated that Iran is “pillaging resources that belong to the Iraqi people.”
• The U.S. emphasized it will not allow Iraqi oil to be used to finance terror-related activities or regional destabilization. 🚨

🌍 Geopolitical Impact

• This highlights the ongoing struggle over control of Iraq’s oil sector and financial sovereignty.
• It reflects U.S. efforts to cut funding channels to Iran-backed groups such as Asa’ib Ahl Al-Haq and other proxy networks.

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📊 Big Picture Insight

This situation shows a deeper geopolitical push to:

• tighten control over Iraqi oil revenues 🛢️
• reduce corruption and parallel financial networks 💰
• weaken militia-linked economic influence ⚖️

In theory, stronger enforcement of state control over oil and revenue flows can support long-term financial stability in Iraq and improve confidence in its economic system. 📈🇮🇶

---

#Hashtags

#IraqEconomy #OilSector #Sanctions #OFAC #IranIraq #Geopolitics #EnergyMarkets #MiddleEastNews #FinancialSovereignty #Corruption #OilRevenue #EconomicPressure

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EXPERTS: “SECURITY GUARANTEES” ARE A PREREQUISITE FOR THE RETURN OF INTERNATIONAL COMPANIES AND MISSIONS TO IRAQ

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.

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💼 U.S. Tax Perspective on Forex Exchanges (Section 988 Explained)

  Fnu Lnu  

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

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💼 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.

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📊 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.

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#Hashtags

#ForexTax #IRSSection988 #TaxLaw #CurrencyExchange #FinancialEducation #DinarDiscussion #TaxRulesUSA #OrdinaryIncome #CapitalGains #InvestmentBasics #ForexTrading #FinancialLiteracy

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FRANK26…..5-8-26….WHITE PAPERS

 

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THE UNIFIED TREASURY RECOVERS TRILLIONS OF DINARS AND CLOSES THOUSANDS OF BANK ACCOUNTS

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.”

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🇮🇶 Iraq’s Path to a 1:1 Currency: Three Critical Reforms That Must Happen First 💰📈

  Sandy Ingram  

 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. 

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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. ⏳

#Hashtags
#IraqEconomy #IraqiDinar #CBI #EconomicReform #DeDollarization #MiddleEastFinance #CurrencyStability #OilRevenue #FiscalReform #InvestmentOutlook #EconomicGrowth #FinancialStability #IraqReforms

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