Thai Opposition Slams Draft Constitution
Source: Reuter
Voice of America News
August 28, 2015
BANGKOK—
Thailand's main opposition party denounced a military-backed draft constitution on Friday saying it "totally disregards the sovereignty of the Thai people", a
week before a junta-appointed council is due to vote on it.
The army seized power in a bloodless coup in 2014, toppling the remnants of the Pheu Thai Party-led government of ousted Prime Minister Yingluck Shinawatra. Prime Minister Prayuth Chan-ocha, who as army chief led the coup, has ruled largely unchallenged since.
"This charter totally disregards the sovereignty of the Thai people," the Pheu Thai Party said in a statement. "The true power belongs to agencies and mechanism which are designed to maintain the junta's power without checks and balances."
The National Reform Council (NRC) will vote on the draft on Sept. 6 and if it passes, it will be put to a referendum in January. It needs the support of just over half the NRC's 247 members.
Of particular concern is a proposal for a 23-member National Strategic Reform and Reconciliation committee dominated by the military that allows security to intervene in a time of crisis.
"Many provisions are contrary to international democratic principles and the rule of law," Pheu Thai said.
Many politicians say they expect the charter to pass the vote but to be rejected in the referendum, which would mean the drafting process has to begin again, delaying an election the junta has promised for next year.
Some groups have held peaceful protests against the junta but opposition activists have largely gone to ground in recent weeks after authorities arrested some student activists.
Prayuth has, however, had to contend with criticism leveled at his administration's handling of Thailand's flagging economy and, more recently, slow progress in an investigation into a Bangkok bomb attack that killed 20 people, more than half of them foreigners.
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Source: Bloomberg
By Anuchit Nguyen
8 hours ago
Thailand’s baht sank to a six-year low as a central bank move to allow domestic investors easier access to overseas markets sparked concern that outflows will increase.
The Bank of Thailand will permit wealthy individuals and companies to directly invest in foreign equities, bonds, mutual funds and other financial assets, Deputy Governor Pongpen Ruengvirayut told reporters Friday. Overseas investments will be limited to $5 million per year, she said.
The baht retreated 0.5 percent to 35.843 a dollar as of 1:38 p.m. in Bangkok, erasing a gain for the week, according to data compiled by Bloomberg. It fell to 35.94 earlier, the weakest since March 2009, and has dropped 8.1 percent this year.
“The central bank is probably more comfortable letting funds flow out through residents rather than making it easier for foreign investors to move cash in and out,” said Shigehisa Shiroki, assistant general manager at Mizuho Bank Ltd.’s treasury department in Bangkok. Orderly declines in the baht look acceptable to the central bank, he said, adding that the currency could weaken to 36 a dollar over the next few months.
The Bank of Thailand made two unexpected cuts to its benchmark interest rate this year to weaken the baht and help exporters. In April, it eased restrictions on outflows by raising limits for Thais’ foreign-currency deposits and for overseas property investments.
International investors withdrew a net $1.22 billion from domestic equities this month, poised for the biggest monthly outflows since 2013, according to stock exchange data. They also sold a net $451 million of local bonds.
A recent explosion in Bangkok’s central shopping district may cut tourist arrivals by 300,000 this year and trim economic growth by 0.05 percentage point, Ekniti Nitithanprapas, a senior finance ministry official, said at a press briefing Friday. The ministry maintained its economic growth forecast for 2015 at 3 percent.
Ten-year sovereign bonds dropped in the first weekly decline since July, with the yield rising 15 basis points to 2.81 percent, data compiled by Bloomberg show. The three-year yield climbed six basis points from Aug. 21 to 1.64 percent.
Thailand’s baht sank to a six-year low as a central bank move to allow domestic investors easier access to overseas markets sparked concern that outflows will increase.
The Bank of Thailand will permit wealthy individuals and companies to directly invest in foreign equities, bonds, mutual funds and other financial assets, Deputy Governor Pongpen Ruengvirayut told reporters Friday. Overseas investments will be limited to $5 million per year, she said.
The baht retreated 0.5 percent to 35.843 a dollar as of 1:38 p.m. in Bangkok, erasing a gain for the week, according to data compiled by Bloomberg. It fell to 35.94 earlier, the weakest since March 2009, and has dropped 8.1 percent this year.
“The central bank is probably more comfortable letting funds flow out through residents rather than making it easier for foreign investors to move cash in and out,” said Shigehisa Shiroki, assistant general manager at Mizuho Bank Ltd.’s treasury department in Bangkok. Orderly declines in the baht look acceptable to the central bank, he said, adding that the currency could weaken to 36 a dollar over the next few months.
The Bank of Thailand made two unexpected cuts to its benchmark interest rate this year to weaken the baht and help exporters. In April, it eased restrictions on outflows by raising limits for Thais’ foreign-currency deposits and for overseas property investments.
International investors withdrew a net $1.22 billion from domestic equities this month, poised for the biggest monthly outflows since 2013, according to stock exchange data. They also sold a net $451 million of local bonds.
A recent explosion in Bangkok’s central shopping district may cut tourist arrivals by 300,000 this year and trim economic growth by 0.05 percentage point, Ekniti Nitithanprapas, a senior finance ministry official, said at a press briefing Friday. The ministry maintained its economic growth forecast for 2015 at 3 percent.
Ten-year sovereign bonds dropped in the first weekly decline since July, with the yield rising 15 basis points to 2.81 percent, data compiled by Bloomberg show. The three-year yield climbed six basis points from Aug. 21 to 1.64 percent.
