Thai baht soars as voters back pro-democracy parties
The Thai baht hit a five-week high this morning after pro-democracy parties came out as the biggest winners in yesterday’s General Election after nearly a decade of military-backed rule in Thailand.
The baht rallied 0.9% this morning to 33.70 against the greenback for the first time since April 5 after opposition parties Move Forward Pary (MFP) and Phue Thai won the majority of seats by a mile, paving the way for a coalition to wrangle power away from the military and back into the hands of the population.
Parties associated with the military received much less support, with the United Thai Nation party and Palang Pracharath parties receiving around 10% and 12% of the vote, respectively. But, with Parliamentary rules written by the military junta, no coalition is certain just yet in Thailand.
Either way, the vocal call for change was overwhelming and sent the baht’s value shooting upward this morning. The baht may get a further boost as data published today reveals that Thailand’s economy expanded at a faster rate in Q1. According to Bloomberg, Thailand’s gross domestic product rose 2.3% from one year ago.
However, yesterday’s positive result presents a big risk to Thailand’s economy at the same time if it is followed by a military coup. Despite Thailand’s army chief promising it won’t happen, military intervention in the near future just can’t be ruled out given Thailand’s coup-ridden history.
After all, the military-backed constitution gives the military the role to select the 250-member Senate, which votes alongside the 500-seat elected parliament.
Given Thailand’s political history, it is a concern that the MFP’s policies to reform Thailand’s major institutions, while popular with voters, could lead to major problems.
The leader of the Move Forward Party, Pita Limjaroenrat, tweeted this morning…
“We believe that our beloved Thailand can be better, and change is possible if we start today … our dream and hope are simple and straightforward, and no matter if you would agree or disagree with me, I will be your prime minister. And no matter if you have voted for me or have not, I will serve you.”
