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Upon further research this morning, it is reported that Maliki’s HCL did pass a HCL in February of 2007 and sent it to Parliament in May of 2007. This was the culmination of a push by the Bush administration that started in 2004 after they hired the consulting firm Bering Point to help write the law.
The Bush administration considered this passage of the law as a Benchmark for the Maliki administration. Although it was sent to parliament, due to its contentious nature, it was never even brought for a First Reading in Iraq’s Parliament. At least that is what my research revealed.
I know Frank continues to say Parliament is going to discuss and/or pass the HCL to give money to the citizens. I am confused as I don’t understand from where this money will magically appear.
90% of Iraq’s revenues come from oil sales in USD. Even an RI will not affect the value of the oil sales. In fact, each dollar will buy less IQD after the RI that we expect.
Additionally, Iraq is and has been functioning with a deficit over the last few years. We have seen many articles regarding this fact It was always my understanding that money remitted directly to the people can only be from a surplus.
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I would really appreciate some clarification as to what HCL can be passed by Parliament much less even discussed as Frank himself even said that there has never been an HCL passed. Wouldn’t a COM have to have had to pass it and send it to Parliament and it have a First Reading, a Second Reading, possibly a Third Reading and a vote???
I really think it would be helpful for Frank and his Teams to weigh in on this as to how Parliament can be in a position to discuss and pass a HCL possibly as early as Saturday and also as to where funds will come from to remit to the citizens……
If we have to wait until the HCL is passed prior to the RI, I think many of us would want to understand what to watch for and how soon this can occur. It just doesn’t seem to me to be possible anytime soon.
Even the Oil and Gas Law between Baghdad and Kurdistan cannot be finalized and agreed as the non-oil revenues remain a contentious issue. How can a full HCL be ready for a vote? I am just trying to be a good student and I continue to have more questions than answers.
Mike » March 7th, 2026
IMO.. I dont know any more than most others about this ‘Revalue process and HCL’, but I have some long standing beliefs. One of those is that we will see the HCL (Article 140) prior to or at the same time as a new rate.
Im not sure of the exact numbers but I believe that oil sales are in USD and are around 3.5 to 4 mil bbls/day? As production increases, depending on the agreements with OPEC, that may increase.
Iraq has paid Kuwait and has paid for the oil infrastructure which needed to be built, so there should be more money for other modernization projects in the budget. Also, they are starting to use natural gas for their energy needs.
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The HCL was never supposed to give citizens money as much as setting aside a portion of the oil sales for future generations- much like Kuwait.
It also sets the agreements between the Kurdish region and the Central govt. They have been discussing this for years. They have an idea where these numbers lie. As they find new oil or mineral deposits, the numbers may change slightly to account for this, but they know.
For them to make a final agreement on anything, they need a gentle push, or maybe a shove. They need to ‘Save Face’ in regards to their agreements. It’s not something which we really understand.
The Reval, on the other hand, increases purchasing power. If the rate goes 1-1 with the dollar, and they remove the 3 zero notes, then they have gained a small amount of purchasing power. If their rate goes to $2.00, they now can buy twice as much as before, especially with imported goods and services.
This should also apply to contracts w outside contractors as they are paid with a revalued dinar.
We have seen for years that the banks in Iraq needed to increase their reserves. I really dont understand the ‘financial system of this world’, but if the CBI holds a billion dinar which is currently 1 million dollars, then after a reval at 1-1, its instantly a billion dollars.
I assume this is how we can afford to be paid.
They used the dollars we paid to survive the lean times to get their oil infrastructure going. The world took money out of the financial system when they devalued the dinar. Now they will be adding it back in.
Source: Dinar Recaps
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