All eyes on first mission of controversial new BOT chairman Kittirat
Critics fear new chair’s links with ruling Pheu Thai Party will erode Bank of Thailand’s independence
Former finance minister Kittirat Na-Ranong was selected as chairman of the board of the Bank of Thailand on Monday, according to a source familiar with the matter.
The source reported that after a five-hour session, the selection committee chose Kittirat to replace Poramethi Vimolsiri, whose term expired at the end of September.
The committee also named two new specialist board members to replace those whose terms expired. The new specialist members are Pongpanu Svetarundra, former Tourism and Sports Ministry permanent secretary, and Chunhajit Sangmai, former Finance Ministry deputy permanent secretary.
Finance Ministry permanent secretary Sathit Limpongphan, who chairs the panel, said the new chairman must first get Cabinet approval and be appointed by His Majesty the King before his appointment can be officially announced.
Kittirat’s candidacy for the post of BOT board chairman has been heavily criticised due to his close ties with the ruling Pheu Thai Party past and role as adviser to former prime minister Srettha Thavisin.
Analysts fear his appointment will result in government interference in the central bank, potentially eroding investor confidence in the bank’s independence from political influence.
Critics speculate that Kittirat’s first mission as BOT board chairman will be to pressure the central bank’s Monetary Policy Committee (MPC) to cut the policy rate, a move that the government deems necessary to push its economic stimulus campaigns.
Others forecast that the new board chairman could push for the amendment laws to allow the transfer of debts under the Financial Institutions Development Fund (FIDF) from the Finance Ministry to the BOT’s account.
That move would cut public debt by around 5% of GDP, creating more room for the government to incur new debts to support its economic stimulus programme, said analysts.
Some critics fear the new chairman could use the country’s reserves of gold, foreign currency and bonds to fund government projects, which is currently barred by the law.
Among groups voicing opposition to Kittirat’s appointment is the “Economists for Society”, comprising 830 economists, including four former BOT governors – Pridiyathorn Devakula, Tarisa Watanagase, Prasarn Trairatvorakul, and Veerathai Santiprabhob.
Critics have reportedly gathered over 50,000 signatures in protest against the move, on grounds it will erode the BOT’s independence from short-term political policies.
