In a powerful statement, 109 academics, including former central bank governors and esteemed economists, have voiced their disquiet over potential political interference in the Bank of Thailand. They caution that such meddling, driven by short-term political gains, threatens the country's economic credibility.

 

The concern arises as the central bank's board prepares for a pivotal meeting on November 4 to appoint a new chairman and members. Reports suggest the Thai government intends to nominate Kittiratt Na Ranong, a former deputy prime minister closely linked with a political party, for the chairman post.

 

The academics argue that placing a political figure in this role could lead to undue influence over the bank's fiscal policies, jeopardising long-term economic stability. They underline that independence is crucial for the central bank to effectively manage foreign reserves and set sound fiscal policies essential for Thailand’s economic health.

 

The experts also forewarn that if political appointees take charge, a new politically aligned central bank governor might follow mid-next year. The group passionately appeals to the selection committee to resist external pressures, ensuring a fair and transparent appointment process that upholds the integrity of the Bank of Thailand.

 

File photo for reference only

 

-- 2024-10-31

 

 

Political interference from a government heavily in debt?

Surely not. 

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Thai Academics Warn Against Political Interference in Central Bank

Are those academics aware that they are in essence warning the Shinawatra's not to exert political influence on an independent institution? Just like Aesop's fable "The Scorpion and the Frog": It's their nature to interfere, no matter the consequences