Political figures must not be allowed to become central bank chair
Four former Bank of Thailand (BOT) governors are among the 227 academics who issued a statement on Wednesday, opposing political figures from assuming the chairmanship of the central bank’s board.
Former governors Pridiyathorn Devakula, Prasarn Trairatvorakul, Veerathai Santiprabhob and Tarisa Watanagase released the statement in advance of the selection of the BOT board chairman and two members, which will take place on November 4.
The government has proposed a political figure to serve as BOT chairman position replacing Porametee Vimolsiri, who completed his tenure on September 16.
Former Commerce Minister Kittiratt Na-Ranong, who was former deputy leader and former chief strategist on the economy under the ruling Pheu Thai Party, has been tipped for the post.
He also served as an adviser to former prime minister Srettha Thavisin and criticised the BOT's interest rate policy and the agency's independence.
According to the statement, the academics are concerned over the economic stability and long-term expansion if monetary policy is dominated by politics.
The group also claimed that political parties would aim for short-term benefits to compensate for the risk of being removed from their positions.
“Maintaining economic stability is the BOT’s main mission,” the statement read. “The central bank should be independent in implementing policies to maintain economic stability, address the economic situation and ensure maximum benefits for the nation.”
The statement noted that the BOT played a crucial role in several missions, such as organisation management, management of foreign exchange reserves, and selection of members to serve on important policy committees.
“If committee chairmen or members use their authority to meet political parties’ short-term benefits, this would cause damage to and negatively impact economic stability that cannot be resolved,” the statement read.
The academic group warned that if a political figure succeeds in becoming chairman of the BOT board, political parties would likely use similar tricks for the selection of the central bank governors next year to seek political benefits.
The group called for the central bank’s selection committee to be transparent in performing their duties and not bow to political pressure.
The group also asked all other sectors to take part in preserving the central bank’s independence, as well as maintaining economic stability and Thailand’s image globally.
