Key Takeaways:

• • Reactions to New Quran Burning Incident Strain Relations with Europe; Turkey’s Erdogan to visit Iraq Next Week – On July 22, hundreds of Muqtada al-Sadr’s followers demonstrated near the Green Zone in Baghdad to protest another incident in which a group of ultranationalists desecrated a copy of the Quran near Iraq’s embassy in Copenhagen. Iraq’s Foreign Affairs Ministry condemned the burning of the Quran and called on European countries to “quickly reconsider the so-called freedom of expression and right to protest.” Although Baghdad’s response stopped short of freezing ties with Denmark, as was the case with Sweden last week, the situation has negatively impacted Iraq’s relations with other European countries. German officials said that Berlin’s Defense Minister canceled a planned trip to Baghdad because of security concerns following the protests and last week’s attack on the Swedish embassy in Baghdad. On July 25, PM Sudani met with the Turkish ambassador to Iraq to discuss an upcoming visit by President Erdogan. News sources suggest the visit could happen next week, when Baghdad will be hosting an international conference on water sponsored by UNICEF. In other developments, on July 24, the PM of Jordan visited Baghdad for talks with PM Sudani that focused on expanding bilateral trade, establishing power grid connections, and oil exports. On July 26, PM Sudani reportedly issued orders to create a new security agency that will be tasked specifically with investigating crimes committed by members of Saddam Hussein’s regime. more…
  • Danish Aid Organization Attacked In Basra; New Bombing Targets Coalition Convoys After Long Pause – On July 22, unidentified gunmen attacked the Basra offices of the Danish Refugee Council (DRC) with rocket propelled grenades, setting some trailers on fire without causing casualties. DRC has been active in Iraq for nearly 20, delivering aid to people affected by conflicts and displacement, and providing demining services in the country. The attack comes amid rising tensions between Iraq and European countries following last week’s incidents, in which individuals desecrated copies of the Quran in Denmark and Stockholm, speaking angry protests and threats. Last week, a militia group called Ashab al-Kahf urged their members and other “resistance” groups to “seek and destroy Swedish interests.” In other developments, between July 23 – 27, the explosions of three IEDs in Diyala, Duhok, and Diwaniyah, killed a former Kurdish security official and injured two civilians. One of the IEDs targeted a convoy transporting supplies for the anti-ISIS International Coalition for the first time in more than three months. more…
  • Central Bank Struggles To Address New Foreign Currency Shortage; Erbil And Baghdad Resolve Disagreements Over Budget Procedures – On July 23, the Central Bank of Iraq (CBI) decided to allow certain classes of currency exchange companies to participate in its foreign currency “auction” in an effort to address a new shortage in U.S. dollars that has sent exchange rates up. The latest shortage comes days after the CBI barred 14 Iraqi banks from conducting transactions in the U.S. dollar after they were targeted by restrictions imposed by the U.S. Treasury and Federal Reserve Bank of New York over money laundering concerns involving transactions with Iran. As of Thursday, the exchange rate on the unofficial market was IQD1,570 to $1, compared to the official CBI rate of IQD1,320 to $1. The situation sparked protests outside the CBI building in the capital. On July 27, the federal government and the KRG signed an agreement that clarifies their respective obligations concerning the implementation of the federal budget law. Specifically, the two sides agreed that the KRG would hand over 100% of non-oil revenue to authorities in Baghdad, who would later return 50% of that amount to the KRG, in line with procedures used with other provinces. The latter has been a point of contention between Baghdad and Erbil, as the KRG initially refused to send the whole value of non-oil revenue to Baghdad. KRG negotiators are hopeful that the new deal will result in Baghdad releasing budget payments to Erbil soon. more…

Attention readers! ISHM will take a break next week for Thanksgiving, but it will be back the week after, with comprehensive coverage of the week we missed!

For more background on most of the institutions, key actors, political parties, and locations mentioned in our takeaways or in the stories that follow, see the ISHM Reference Guide.

Reactions to New Quran Burning Incident Strain Relations with Europe; Turkey’s Erdogan to visit Iraq Next Week

On July 22, hundreds of Muqtada al-Sadr’s followers held demonstrations near the Green Zone in Baghdad to protest another incident in which a group of ultranationalists desecrated a copy of the Quran near Iraq’s embassy in the Danish capital, Copenhagen. The protesters, shouting pro-Islami and pro-Iraq slogans, attempted to storm gates leading to the Green Zone, but were pushed back by security forces. In a statement, Iraq’s Foreign Affairs Ministry condemned the burning of the Quran in Denmark and called on European countries to “quickly reconsider the so-called freedom of expression and right to protest.” The Ministry’s response, however, stopped short of freezing ties with Denmark. Nonetheless, the situation has negatively impacted Iraq’s relations with other European countries. On July 23, German officials said that Berlin’s Defense Minister, Boris Pistorius, decided to cancel a planned trip to Baghdad because of security concerns following the protests and last week’s attack on the Swedish embassy in Baghdad. Last week, on July 20, the Iraqi government decided to sever diplomatic relations with Sweden in response to reports that an Iraqi immigrant in Sweden desecrated a copy of the Quran outside Iraq’s embassy in Stockholm. Baghdad condemned Swedish authorities for allowing the individual in question to perform his act, and asked the Swedish ambassador to leave Iraq, while also recalling its charge d’affaires from Stockholm. News of the Quran burning sparked violent protests by Sadr’s followers, who attacked the Swedish embassy, setting the building on fire. Following these incidents, Prime Minister Mohammed al-Sudani met with a large group of foreign ambassadors in Baghdad to reassure them that his government was serious about protecting the safety of diplomatic missions in the country. Sudani also urged European countries to take action to fight hate speech, extremism and acts that offend the beliefs of other cultures, arguing that such actions are outside the bounds of free speech. 

On July 24, the Prime Minister of Jordan, Bishr al-Khasawna, visited Baghdad accompanied by a delegation of his government officials and held talks with Iraqi Prime Minister Mohammed al-Sudani. The talks between the two sides focused on economic cooperation and expanding bilateral trade through the private sector, a statement by Sudani’s office said. Iraq and Jordan also discussed progress on creating a joint economic city and other economic integration initiatives within the framework of trilateral cooperation with Egypt. Energy relations were also discussed during the visit, particularly with regard to establishing power grid connections (132KV at Rutba followed by 400KV at al-Qaim), expanding the volume of trucked Iraqi oil sales to Jordan, and the status of a much-delayed project to extend an oil pipeline to Jordan’s Aqaba port. Iraqi and Jordanian officials also agreed to simplify visa issuance procedures by their respective embassies to encourage travel.  

On July 25, Iraqi Prime Minister Mohammed al-Sudani met with the Turkish ambassador to Iraq, Ali Riza Guney, to discuss an upcoming visit by Turkish President Recep Tayyip Erdogan to Iraq. A statement by Sudani’s office said he and Guney also discussed plans to establish a joint economic forum in Basra, Turkey’s role in Iraq’s Development Road project, and water sharing issues, including plans to build a joint water metering station on the border between the two counties. The statement did not mention an expected date for Erdogan’s visit, but other news sources suggest it could happen as soon as next week, when Baghdad will be hosting an international conference on water sponsored by UNICEF. In related news, Guney also met with Iraq’s Minister of Water Resources on July 24 and discussed Iraq’s share of the Tigris and Euphrates rivers and the implementation of a related memorandum of understanding signed by the countries in 2021.  

On July 26, Prime Minister Mohammed al-Sudani issued orders to create a new security agency that will be tasked specifically with investigating crimes committed by members of Saddam Hussein’s regime, a government source told Mawazin. ِAccording to a government document circulating on social media, the authenticity of  which ISHM could not confirm, Sudani will appoint an official named Farhan Sahib Hassan to lead the new agency.

Sources cited in this section include: Rudaw, NINA, AP, INA, ISHM archives, Reuters, Social media, al-Hurra, Iraqi PM’s office, Mawazin. 

Danish Aid Organization Attacked In Basra; New Bombing Targets Coalition Convoys After Long Pause

On July 23, security sources in Diyala said that an improvised explosive device (IED) detonated striking a vehicle carrying two civilians in the Jadidat al-Shatt subdistrict, northwest of Baquba. The explosion seriously injured the two passengers. 

On July 22, Iraqi security sources said that unidentified gunmen attacked the Basra offices of the Danish Refugee Council (DRC) with rocket propelled grenades, setting some trailers on fire without causing casualties. DRC has been active in Iraq for nearly 20, delivering aid to people affected by conflicts and displacement, and providing demining services in the country, a statement by the organization said. The attack comes amid rising tensions following last week’s incidents, in which individuals desecrated copies of the Quran in Denmark and Stockholm, speaking angry protests, and threats, in Iraq. Last week, a militia group called Ashab al-Kahf urged their members and other “resistance” groups to “seek and destroy Swedish interests,” and to “find every Swede…and kill them wherever you find them,” accusing Sweden of being a front for Israeli plots.

On July 23, local officials in the city of Zakho, in Duhok province, said that a car exploded due to unknown reasons around 8pm local time near the Zakho military academy. The explosion killed the vehicle’s driver, who was identified as Mohammed Mirza Younis, a former security official with the Kurdistan Democratic Party who had reportedly received multiple threats from the Kurdistan Workers’ Party (PKK). 

On July 25, Basra police said that unidentified gunmen attacked the offices of a general contracting company called Sahl al-Iraq in al-Corniche area of the city. The attack which local officials blamed on “extortion gangs” injured at least one person. 

On July 27, Iraqi security sources said that an IED exploded overnight targeting a convoy transporting supplies for the anti-ISIS International Coalition on a major highway in the southern Diwaniyah province. There were no reports of casualties or serious damage as a result of the attack, which is the first to target such a convoy in more than three months. 

On July 27, Peshmerga officials in the Kurdistan region said that a helicopter belonging to the U.S.-led anti-ISIS coalition crashed due to technical reasons in an area near the Gwer district, southwest of Erbil. According to the officials, two people who were onboard the aircraft suffered slight injuries as a result and were evacuated from the site. 

Sources cited in this section include: Shafaq, Mawazin, Rudaw, social media, NINA, al-Hurra, Nas News, ISHM archives.

Central Bank Struggles To Address New Foreign Currency Shortage; Erbil And Baghdad Resolve Disagreements Over Budget Procedures

On July 21, Iraq and Lebanon signed a deal under which Iraq will provide Lebanon with  2 million tons of crude oil per year, a statement by Lebanon’s Energy and Water Ministry said. Plans to make the deal were first announced in May, when the two countries renewed and expanded a trade deal, first signed in 2021, under which Iraq delivered 1 million tons of fuel oil per year in exchange for Lebanese goods and services, including in the health sector. The new deal brings the total volume of crude and fuel oil between Baghdad and Beirut to 2 million and 1.5 million tons per year, respectively. 

On July 23, the Central Bank of Iraq (CBI) decided to allow currency exchange companies to participate in its foreign currency (including U.S. dollar) “auction” in an effort to address a new shortage in foreign currencies, especially the U.S. dollar. The currency exchange companies that want to purchase foreign currencies from the CBI would have to have a rating of “A” or “B” and open an account with the CBI. The latest shortage, evidenced by a sharp increase in exchange rates on the market, comes days after the CBI barred 14 Iraqi banks from conducting transactions in the U.S. dollar after the U.S. Treasury Department and Federal Reserve Bank of New York imposed sanctions on those banks over money laundering concerns involving the banks’ transactions with Iran. As of Thursday, July 27, the exchange rate on the unofficial market was around IQD1,570 to $1, which is significantly higher than the official rate of IQD1,320 to $1 set by the CBI. The declining value of the local currency against the dollar, which impacts the prices of consumer goods including food staples, sparked protests outside the CBI building in the capital.  

On July 25, Iraq’s Planning Ministry released new data about informal housing settlements in Iraq based on a new survey conducted with support from UN-Habitat and funded by the European Union. A senior ministry official said the survey identified 4,679 informal settlements where more than 3.7 million Iraqis (more than 10% of the population) are living. The capital, Baghdad, had the highest share of informal settlements, with more than 1,000 of them, representing 23% of the total settlements surveyed. It is followed by Basra with 715 settlements. The province with the least informal settlements is Najaf, where 89 settlements (identified as having 5 or more residential units) were surveyed. The survey did not cover the provinces of Anbar, Salah ad-Din, or the Kurdistan region, implying that the actual numbers could be 10% higher than the survey showed, an EU official remarked.   

On July 27, Iraqi government sources said that officials from the federal government and the Kurdistan regional government (KRG) signed an agreement that clarifies their respective obligations concerning the implementation of the federal budget law and the disbursement of the KRG’s share. The agreement affirms the commitment to implementing article 12 of the budget law, concerning oil produced by the KRG, as written in the law. The two sides also agreed that the KRG would hand over 100% of non-oil revenue to authorities in Baghdad, who would later return 50% of that amount to the KRG, in line with procedures used with other provinces that generate revenue from ports of entry. The latter has been a point of contention between Baghdad and Erbil, as the KRG initially refused to send the whole value of non-oil revenue to Baghdad. KRG negotiators are hopeful that the new deal will result in Baghdad releasing budget payments to Erbil soon. Disagreements over the details of the budget have caused delays in paying the salaries of civil servants and pensioners in the Kurdistan region. 

Sources cited in this section include: al-Hurra, Iraqi PM’s office, ISHM archives, Mawazin, Reuters, Shfaq, INA, Rudaw, Nas News.

IED Incidents and Resulting Casualties

Casualties Due To IEDs from July 20, 2023 - July 27, 2023

Please note: some geographic locations represented are approximations and this map may not represent all incidents.

Derived from firsthand accounts and Iraq-based Arabic and Kurdish news sources, the Iraq Security and Humanitarian Monitor is a free publication of the Enabling Peace in Iraq Center.

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