Yesterday we saw some of the best news to come out of Iraq in a LONG time! I know I’ve been positive about the dinar for a few weeks, but now I’m actually EXCITED!
As I’m sure you’re aware, we have had a Hydro Carbon Agreement for some time now. That’s fine and dandy, but I don’t believe it was possible to see an RV of any significance until there is a LAW on the oil agreement.
Maliki kept progress at bay for years… As of beginning of this year, Maliki was ousted and now we have Good Guy Abadi at the helm, and for a few months he was a rock star! We saw a flurry of progress…and then it all slowed down. We had nothing major to get excited about over summer, and we all wondered when, or if, things would ever get moving again.
Well, as of a couple weeks ago we started seeing some hints that things might be picking up speed again.
…and YESTERDAY it was announced that Parliament plans to include the HCL into the 2016 budget. That by itself wouldn’t be too impressive – we see fluff from Parliament all the time. But THIS time they included verbiage that specifically states how it’s going to work.
The Kurds will honor their oil commitment, or they get their funds cut off. This also means that their funds will not be cut off, provide they honor their agreement… and by putting it in the budget, that’s almost as good as passing the actual Law.
Let me put it another way – generally these announcements are one-sided, and we can always expect them to go back and forth on it. THIS announcement accommodates BOTH sides, and is the single most solid evidence that we are moving forward that I have EVER seen on the HCL.