in the futures market. this is particularly the case when the guaranteed buying prices from the government are set at relatively high level compared to market - determined prices. i mentioned before that the average daily turnover in the afet now is around 400 contracts. however, the majority of the trading is heavily concentrated in the ribbed smoked rubber sheet no. 3 while the contracts for white rice are rarely traded. i cannot help but feel that the existence of the price support scheme may have contributed to this apparent lack of interests in rice futures trading. as of last friday, only 3 contracts for white rice were traded and the open interests were only for 60 contracts equivalent to 300 metric tonnes. for a country that exported 7. 6 million tonnes of rice last year - the highest volume in its history, i believe our rice futures market has high potential to grow, if conditions are right. the government guaranteed prices are set once a year and thus, do not incorporate new information into the price. on the contrary, futures contracts are traded on a daily basis and these prices are said to be the best predictor of prices in the future – pricing in all currently available information. players should be encouraged to hedge their produce through the futures market rather than through a static price - support scheme. in the medium term, the price - support scheme should be eventually phased out so that our producers would be freed to stand on their own feet. it is crucial that we implement the change gradually to enable those involved to adjust. i feel that we should strive in this direction - it is only then would our producers be able to respond to competition in the global market place. these days, many agricultural - related products in thailand are subject to price ceilings. these price control schemes coupled with the price support projects outlined above mean that the market mechanism is not well - functioning. distorted prices in the spot market may have also discouraged foreign players from participating actively in our futures markets. a freely traded spot market is a necessary condition for a successful futures market. ladies and gentlemen, i would urge the board of directors of afet and aftc, the ministry of commerce, the government, all members of afet and key players in our main agricultural products to be totally committed to making afet a highly successful futures market - an exemplar to our neighbours and one where global trading is benchmarked. we need to be strategic, prioritising our products and evaluating needs of different participating groups. i pledge my full support to this cause. i

most emerging markets at this time, the most serious external risk is the challenges posed by large and persistent capital inflows. the first challenge involves a macroeconomic dilemma that centres around the tension between appreciation pressures, inflation dynamics, and growth prospects. the second stems from financial stability concerns associated with potential build - ups of macroeconomic imbalances, risk of asset price bubbles, and the possibility of an abrupt reversal of inflows. in the past, as we all know, reversals of capital have trigged serious debt defaults, banking distress, and currency crises. so, with the nature of risk becoming more external, the abilities of central banks to respond effectively to the new challenge based on domestic measures will be limited. this calls for a reconsideration of policy coordination, both in the context of within - country coordination, and cross - country coordination. the third implication from the global crisis is the heightened expectation and trust that the public now has on central banks, as guardian of stability, to do its utmost to avoid financial crisis, and to do it professionally and independently. in the west, the current crisis has diminished public trust on the roles of government and financial institutions in safeguarding and upholding public interest. to this end, central bank independence is seen as an important pre - condition for ensuring safety, continuity, and stability. this is a challenge that central banks will need to recognize in performing their duties. so, given this backdrop, challenges facing central banks going forward will be more demanding. and to meet these challenges, central banks will need to be thinking clearly on at least two issues. the first is the right policy framework to respond to the challenge. in the case of monetary policy, from our experience here in thailand, combining inflation - targeting with macroprudential measures under a flexible exchange rate regime has proven to be a good workable policy framework for meeting the challenge posed by the dual mandate of maintaining price and financial stability. nonetheless, in an environment of large and persistent capital flows, having the right policy framework alone may not be adequate. monetary policy will need to be supported by and coordinated with other policies to ensure the best outcome. for example, well - aligned fiscal and monetary policy is important at a time of strong capital inflows to help moderate the adverse impact of capital flows on domestic demand. this means fiscal policy will need to be less procyclical as domestic interest rates rise. next, deeper and more diverse local financial markets will help lessen