Thai Baht Weakens as Court Ousts Prime Minister

The Thai baht weakened following the Constitutional Court's decision to remove the Prime Minister from office due to a breach of moral standards. The court's ruling has sparked concerns about political stability and potential economic repercussions in Thailand.

The court's decision came after a controversial phone conversation between the Prime Minister and the Cambodian Senate President, Hun Sen, regarding border tensions between the two countries. The conversation, which was leaked in June, sparked public outrage and led to the court's investigation into whether the Prime Minister had violated the constitution. The court temporarily suspended the Prime Minister's duties in early July while the investigation was underway.

The court's ruling has significant implications for Thailand's political landscape. The ruling coalition, led by the Pheu Thai Party, will now have to nominate a new candidate for the position of Prime Minister. According to the Thai constitution, the Prime Minister is elected by the parliament, and the ruling coalition will need to find a candidate who can secure the necessary votes.

The court's decision has also raised questions about the future of the ruling coalition and the potential for political instability. The Prime Minister's removal from office could lead to a reshuffling of the government or even trigger early elections. This would further weaken the influence of the Shinawatra family, who have been a dominant force in Thai politics for decades.

In addition to the Prime Minister's case, the legal battles faced by Thaksin Shinawatra, the former Prime Minister and leader of the Pheu Thai Party, continue to cast a shadow over the family's political future. In August, the Criminal Court dismissed charges of lèse-majesté against Thaksin, but the Supreme Court is still set to rule on whether he evaded imprisonment on health grounds. This case stems from Thaksin's return to Thailand in 2023, where he was sentenced to eight years in prison for corruption charges. Although he was granted a royal pardon, reducing his sentence to one year, he was never actually imprisoned and was instead treated in a hospital before being released after about six months. This has led to questions about the legitimacy of his health claims and has brought the case back under judicial review.