A group of 109 academics, including two former central bank governors and many former deans of the faculties of economics at several universities, have issued a statement expressing their concerns over political interference in the affairs of the Bank of Thailand.
They said that the external interference is intended for short-term benefits, which will damage the credibility of Thailand in the longer term.
In the statement, the academics point out that, on November 4, there will be a meeting to select the chairman and other members of the board of the central bank and it is widely believed that the government will nominate a person who is closely connected to a political party for the chairmanship.
It has been widely speculated that Kittiratt Na Ranong, former deputy prime minister and finance minister, will be nominated as the chairman of the central bank’s board.
The academics express concerns that the selection of a government nominee would result in political domination of the central bank, particularly its fiscal policy, which will have long-term consequences on the stability of the Thai economy.
Maintaining economic stability is the responsibility of the central bank, which is the norm for central banks in many countries, they said.
The central bank board’s key role is to regulate and oversee the administration of the central bank, the management of foreign reserves, the selection of members of the various committees of the central bank and, most importantly, the fiscal policy committee, which is an important tool in setting policy and exchange rates.
If the political branch succeeds in putting its person in the chair at the bank, their next step will the selection of a new central bank governor in the middle of next year, warned the academics.
They urge the selection committee, at its meeting, to perform their duty honestly, transparently and not to succumb to political pressure, in order to protect the Bank of Thailand from political interference.
Among the signatories to the statement are former central bank governors Tarisa Watanagase, Dr. Veerathai Santiprabhob and several former deans and lecturers at the Faculty of Economics, including Dr. Praipol Koomsup of Thammasat University, Dr. Nualnoi Treerat, Dr. Atjana Waikwamdee, Dr. Chirmsak Pinthong, Dr. Chittawan Chanakul and Dr. Sirilak Khoman.
