According to a Reuters report citing sources familiar with the matter, on Friday, an independent panel selected the government-backed nominee Somchai Sujjapongse, a former permanent secretary of the finance ministry, to serve as the new chair of the Bank of Thailand’s board.
This came after an unsuccessful attempt to appoint a loyalist from the Pheu Thai Party the previous year, which had faced criticism from previous central bank leaders and numerous economists who raised concerns about maintaining the institution’s independence.
The chair of the central bank board, while not directly involved in setting monetary policy, leads the board responsible for selecting four members to join the monetary policy committee, alongside the governor and two deputy governors.
Additionally, the appointment of a new central bank governor is also on the agenda this year.
As per the sources, though the panel’s chief reported the completion of the selection process, the identity of the chosen candidate was not disclosed.
Somchai was preferred over the central bank’s candidate, Surapon Nitikraipot, a former university head. The appointment requires approval from both the cabinet and the king.
The government’s nominations have been under scrutiny due to its constant disputes with the central bank over monetary policy, including the administration’s persistent demands for interest rate reductions.
According to several sources, the panel initially selected Kittiratt na Ranong, a former Finance Minister. However, in December, the state advisory council determined that his recent political position rendered him ineligible for the role.
Leading up to the present, the government has stated that it is not attempting to exert pressure on the Bank of Thailand and maintains respect for its independence.
