Markets Appreciate Positive Political Developments

The Thai king reopened parliament on Monday after the May 14 elections. And importantly on Monday evening it was announced that the 8-party coalition likely to take over the government had come to an agreement on the central role of House Speaker, which had caused a major dispute between the two largest parties.

• Currency markets have appreciated these developments towards more political certainty with the USDTHB down 1.1% since Thursday’s close. It is now around 35.23 after Friday’s high of 35.71. Thai equities rose 0.25% on Monday.
• Move Forward (MFP) and Pheu Thai have agreed to nominate a former speaker from a third party to be the House Speaker of this parliament. Wan Nor, the leader of the Prachachat Party (third largest party in the coalition), was chosen with MFP and Pheu Thai MPs taking the two deputy positions. The roles will be elected today. The deal was agreed by all 8 coalition parties, according to the Bangkok Post.
• At the opening of parliament, the King advised law makers to use “conscience, wisdom, abilities, honesty” to work for “the interests of the nation and public”.