Parties Meet Today To Sort Speaker Dispute, Baht Weakens Further

Political uncertainty and dollar strength continued to weigh on the Baht with USDTHB up another 0.2% today to be 1.3% higher on the week and 5% since the mid-May election. It is now around 35.69, the highest since late November 2022.

• Talks between the 2 largest parties Move Forward and Pheu Thai to resolve the dispute over which party will take the influential House Speaker position are due to take place today. The Bangkok Post is reporting that they may be considering a power sharing arrangement. Parliament reopens on July 3.
• There is speculation that instead of both Move Forward and Pheu Thai having 14 ministers each, Pheu Thai will give up one in order to have the speaker role. Move Forward will also have the PM position. Leaders have stated that no matter the outcome they will remain partners. The speaker is due to be chosen on July 4.
• The 8-parties that will form the coalition government are scheduled to meet on July 2.
• PM candidate Pita will need support from 64 senators to become prime minister. Most senators have been appointed by the military-aligned government and one has said that Pita would be lucky to gain support from 5 of them. Pita could face difficulties due to his wish to reform the lese majeste law, but he maintains that he has enough support in the senate. The PM vote is expected on July 13.