As the current governor of the Central Bank of Thailand is nearing the end of his turbulent tenure, the country has begun the search for a new governor who possesses “modern ideas” and can collaborate closely with the state.
Thailand’s Finance Minister, Pichai Chunhavajira, announced that talks regarding possible candidates are ongoing. The current governor, Sethaput Suthiwartnarueput, will finish his five-year term at the end of September.
A persistent conflict exists regarding Thailand Prime Minister Paetongt Shinawatra’s government’s approach to revitalizing the economy.
This argument includes a disagreement over monetary policy and inflation targets. Governor Sethaput has highlighted the importance of the bank’s independence.
During a press event organized by the Ministry of Finance late Friday, Pichai told reporters, “The newcomer needs to be innovative and embrace modern ideas.” Given the significant transformations in the world, especially within financial markets, traditional approaches to problem-solving are no longer viable.
As an additional need, Pichai stated that the new governor must be able to “work closely together” with the government and the finance ministry and that they must also have expertise in both economics and finance.
The finance minister must receive a shortlist of candidates from a selection panel that has not yet been publicized. This must be done at least ninety days before Sethaput’s term ends. Applicants must submit their applications once the panel opens the application procedure.
The government has been investigating various methods to establish greater influence over the BOT, including advocating for the nomination of a former finance minister as the finance ministry’s chairman.
Finance Ministry Plans New Candidate for Bank of Thailand Chair
There was a lot of opposition to the chosen candidate, Kittiratt Na-Ranong, who was deemed unfit for the position because of his connections to the party in power.
Although the chair does not participate in meetings about monetary policy, they can assess the governor’s performance and have a role in selecting outside experts to join the seven-person rate panel.
Considering that Kittiratt is no longer eligible for the position, the Permanent Secretary of Finance, Lavaron Sangsnit, stated that the Ministry of Finance will most likely present a new candidate to the selection panel.
Since Sethaput, who is also the Vice Chairman, can temporarily lead until his term ends on September 30, it is unlikely that the delay in appointing a new chair will affect the Board of Trade’s routine operations.
On the other hand, Lavaron stated that the new chairman ought to be nominated before that time.
