Thailand delays naming Bank of Thailand chair as dispute drags on

Published Mon, Nov 4, 2024 · 12:53 PM

THAILAND delayed naming a new central bank chairman as opposition mounted against the government’s bid to push the candidacy of a former finance minister to tighten its grip over the monetary authority.

A panel mandated to pick the new chair postponed a meeting scheduled for Monday (Nov 4) to Nov 11 as it requires more time to carefully “consider all aspects” of the selection, Bank of Thailand (BOT) assistant governor Vireka Suntapuntu said.

The panel, comprising of former regulators and retired bureaucrats, has asked the Finance Ministry to consider replacing its nominee Kittiratt Na-Ranong, a vocal critic of the central bank’s hawkish monetary policy, Krungthep Turakij newspaper reported, without saying where it got the information. Panel head Sathit Limpongpan could not be reached for comment.
The pushback is the latest in a simmering dispute between Prime Minister Paetongtarn Shinawatra’s administration and the BOT on the best way to boost the economy. Both have sparred over monetary policy and inflation targets with the BOT chair selection becoming the latest flashpoint.

While the chairman does not decide on policy, the official will have a say in who joins the Monetary Policy Committee, evaluate the governor’s performance and get involved in foreign reserve management. Also, governor Sethaput Suthiwartnaruep is due to retire next year and has been touting the central bank’s autonomy.

In the meantime, a group supporting the BOT’s independence plan to rally in front of the central bank’s office in Bangkok later on Monday. They will hand over a petition to the central bank warning against any government interference in the BOT chairman’s selection.
A group of former central bank chiefs and economists had last week urged the selection panel not to pick a political representative as the chair as the person would serve the short-term interests of the political parties, damaging economic stability.

Kittiratt, the government’s pick, has slammed the monetary authority for not lowering rates when he served as an economic adviser to Srettha Thavisin before he was ousted as prime minister earlier this year. When Kittiratt was finance minister in Yingluck Shinawatra’s cabinet in 2013, he publicly pressured then-central bank chief Prasarn Trairatvorakul to cut rates.

BOT has nominated Kulit Sombatsiri, who has previously worked at the energy and finance ministries, and academic Surapon Nitikraipot. BLOOMBERG