##ification to better reflect the increasingly important role of the yuan in international monetary system. last but not least, i hope that the inauguration of our beijing representative office will be more than just another success story. i truly hope that the spirit and friendship behind this long - standing relations and successes, nurtured earnestly over centuries, will continue to serve as solid foundations that will lead to even greater and closer future cooperation between our two nations. let me end by thanking everyone for being an important part of this success. and, with your royal highness ’ permission, may i propose a toast to future success and cooperation as well as to your royal highness ’ s good health and prosperity. thank you. bis central bankers ’ speeches

fundamentals remain sound with economic stability intact. last year, monetary policy in thailand was focused on limiting the second round effects of the oil price increase on inflation. that focus i think was well met. policy rate has been held steady from midyear last year, and since then, inflation pressure looks to be moderating. latest data show a further consolidation of inflation in december. so, under the current softening trend, baring no surprises on the oil price, there is also a possibility that, in thailand too, inflation could be less of a policy concern this year. under this scenario, therefore, there could be greater room for monetary policy to aim for a balance between growth and inflation. i noted earlier that, to ensure continued momentum of expansion, what we need to see in thailand this year is a stronger turnaround in domestic demand, especially in private sector investment. this is, in a way, the most important must - have macro development for thailand this year. financial environment supporting private sector investment, i think, is very positive and conducive this year, with lower oil prices, easing domestic inflation, ample liquidity, and a more stable interest rate environment. but to substantially lift investment, what we need to see in thailand is a continued improvement in business sentiment and confidence. here, therefore, lies an important issue for policy. on this, i am quite confident that the ongoing efforts by the government to promote growth with stability will successfully lead to continued improvements in business sentiment and confidence, which will be positive for our investment going forward. i want to end my brief remarks this morning with a few year for our domestic banks and financial firms as they continue to support the economy while preparing for a number of important regulatory changes that are set to take place this year. beginning this month, basel ii will be launched in the g7 economies. for thailand, this means we will have less than two years to prepare for our own eventual adoption of basel ii, which has been slated for end 2008. at this time, most banks in thailand have already decided on using the standardized approach for the calculation of minimum capital. and to prepare for basel ii, we will be asking our banks to begin reporting their capital under the new standardized approach from the third quarter of this year onwards, in parallel with the usual calculation under basel i. this, i think, will be an important exercise for our banks before we formally begin basel ii at the end of next year. this year will also see financial