Former governor of the Bank of Thailand, Tarisa Watanagase, has warned government’s interference in the affairs of the central bank, by appointing one of own people as chairperson of the bank, will spell disaster for the Thai economy.
Only the good conscience of the committee selecting the new chair can prevent such an outcome.
In a written comment, which was released to the media yesterday, Tarisa points out the government had openly expressed its dissatisfaction with the central bank, under Governor Sethaput Suthiwartnarueput, for its refusal to submit to government’s demands for a reduction in interest rates and over the bank’s disagreement with the digital wallet scheme.
She said, lately, there has been speculation that the government will send one of its own people to chair the central bank, apparently, aiming to use the central bank as a tool to deliver its policies.
“If this is allowed to happen, Thailand’s economy will definitely collapse, as has been witnessed in several other countries where the governments have interfered with their central banks,” wrote Tarisa.
Tarisa said that such interference will negatively impact other countries’ confidence in the Thai economic system, because such interference would render the central bank incapable of playing its role in overseeing the long-term economic stability of Thailand.
Referring to the Bt10,000 cash benefits, under the digital wallet scheme, Tarisa said the project creates a huge financial burden, which may risk Thailand’s credibility being downgraded.
She said if the central bank is subjected to interference, to the extent that it loses its independence, the country’s credibility will be at even greater risk of being downgraded, which will, subsequently, impact Thai businesses and the economy as a whole.
Tarisa said, however, that the law governing the central bank has built-in mechanisms to prevent outside interference, by stipulating that members of the selection committee are retired senior government officials from key economic agencies.
The selection committee, over the past several years, has performed its duty with independence and has rejected outside interference,” said the former governor.
Tarisa hopes the committee will continue to do its job with integrity, bearing in mind that not one among them will want to enter the history books as being responsible for a Thai economic disaster.
