Kittiratt Considering Sacking Central Bank Boss

[Lite Beer]

Kittiratt considering sacking central bank boss
By English News

BANGKOK, April 19 – Thai Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong admitted today that he has contemplated firing the central bank governor on a daily basis, but has not done so as he is not legally bound to raise the axe.

Mr Kittiratt and Bank of Thailand (BoT) Governor Prasarn Trairatvorakul have been at odds over responses to resolve the rapid surge of Thai baht and measures on the policy interest rate.

The deputy premier said he would not stop pushing for a lower interest rate which he believes would help depreciate the Thai currency.

Olarn Chaipravat, Thailand Trade Representative president, called on the government and BoT to directly intervene in the currency exchange movement and reduce the policy interest rate in accord with the global market.

The Thai baht has appreciated by six per cent while Chinese yuan was only two per cent stronger and Japanese yen weakened by 20 per cent after the Japan’s central bank announced quantitative easing, he said.

The former deputy premier said only that Taiwan has a higher policy interest rate than Thailand, while those of developed countries like the US and Japan were low.

Payungsak Chartsuthipol, Federation of Thai Industries (FTI) chairman, said industrialists will meet Wednesday to discuss the impact of the strong baht, after having submitted a seven-point proposal on currency and monetary measures to the central bank.

Urgent, short-term assistance is necessary for small- and medium-sized enterprises, he said, adding that the status of Thai currency should be in accord with 14 trading partner countries. (MCOT online news)

-- TNA 2013-04-19

[Yunla]

Its funny that stamping out corruption, which causes untold macro-damage to the Thai economy, is such a low priority for PTP, but threatening sovereign institutions such as BOT is so critically important to them.

If they actually wanted to make Thailand more competitive & successful, they should start with root and branch corruption. Step one would be for PTP to resign from Govt, and go back to prison where they certainly belong. Control of interest rates is of course important, but next to state-level corruption it is negligable.

BOT have to "provide banking facilities to the government and act as the registrar for the government bonds" and being PTP I can only wonder if they are shoehorning somebody more favourable to their own schemes re; this monetary access, into the key post.

[bigbamboo]

The 'mouth' is at it again.

Edited April 19, 2013 by bigbamboo

[Thaddeus]

Perhaps they could swap jobs with each other for a few months and see what happens.

[rheinwiese]

I am pretty sure they can find a member of a certain family from the north of Thailand to happily take over the BOT helm.

After all, it's for the good of the country.

[Thai at Heart]

BANGKOK, April 19 Thai Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong admitted today that he has contemplated firing the central bank governor on a daily basis, but has not done so as he is not legally bound to raise the axe.

Does this mean that he can't legally sack the bot governor?

In which case the headline is extremely misleading

[slapout]

Did not know he was that concerned with legalities when it came to actions by government office holders. His remark of "legally bound to raise the aze" could be interperted in several ways, but probably is political code for the proper chain of command must be followed, so that replacement, find new position/job title, for all those affected, tea money, etc are dealt with to the satisfaction of "da boss'

[khunken]

So, putting one of their men to chair the BOT wasn't enough maybe because he (Virabongsa) doesn't always toe the party line.

Now they want a yes man as governor. Is this another order from Dubai?

[Thai at Heart]

You either control inflation or you control the currency.

Can't have both. Growth is strong so why cut the interest rate. Unless of course, growth isn't strong.

Who is telling a white lie?

[tragickingdom]

Why not independent people are not wanted in the Thai system. They prevent politicians from profiting from the baht like in 1997. It is funny though that all those Thai visa voices that were predicting the collapse of the baht when Yingluck came to power are so mute nowadays.

A strong baht has more advantages than a weak baht. Everybody knows that except for the English and the americans who are printing money like crazy.

[Thai at Heart]

Why not independent people are not wanted in the Thai system. They prevent politicians from profiting from the baht like in 1997. It is funny though that all those Thai visa voices that were predicting the collapse of the baht when Yingluck came to power are so mute nowadays.

A strong baht has more advantages than a weak baht. Everybody knows that except for the English and the americans who are printing money like crazy.

Well when you have 100% of debt to GDP, inflate your way out of it is perfectly logical.

Greece would love to do the same.

[khunken]

Why not independent people are not wanted in the Thai system. They prevent politicians from profiting from the baht like in 1997. It is funny though that all those Thai visa voices that were predicting the collapse of the baht when Yingluck came to power are so mute nowadays.

A strong baht has more advantages than a weak baht. Everybody knows that except for the English and the americans who are printing money like crazy.

Well when you have 100% of debt to GDP, inflate your way out of it is perfectly logical.

Greece would love to do the same.

Who are the (imaginary?) people who were supposed to predict the collapse of the Baht?

The point is that the BOT are closely monitoring the Baht & very likely buying dollars to prevent it skyrocketing. It is being boosted by short-term investors buying government bonds paying a higher rate than US or EU bonds.

The governor should be allowed to do his job without political interference.

[drdoom6996]

Don't worry it's just a little white lie.

[Thai at Heart]

Why not independent people are not wanted in the Thai system. They prevent politicians from profiting from the baht like in 1997. It is funny though that all those Thai visa voices that were predicting the collapse of the baht when Yingluck came to power are so mute nowadays.

A strong baht has more advantages than a weak baht. Everybody knows that except for the English and the americans who are printing money like crazy.

Well when you have 100% of debt to GDP, inflate your way out of it is perfectly logical.

Greece would love to do the same.

Who are the (imaginary?) people who were supposed to predict the collapse of the Baht?

The point is that the BOT are closely monitoring the Baht & very likely buying dollars to prevent it skyrocketing. It is being boosted by short-term investors buying government bonds paying a higher rate than US or EU bonds.

The governor should be allowed to do his job without political interference.

Of course. Either he targets inflation 2 to 2.5% or he targets the currency. All he has is interest rates. He's doing OK.

If they drop interest now, construction will go bonkers.

Edited April 19, 2013 by Thai at Heart

[drdoom6996]

Why not independent people are not wanted in the Thai system. They prevent politicians from profiting from the baht like in 1997. It is funny though that all those Thai visa voices that were predicting the collapse of the baht when Yingluck came to power are so mute nowadays.

A strong baht has more advantages than a weak baht. Everybody knows that except for the English and the americans who are printing money like crazy.

Well when you have 100% of debt to GDP, inflate your way out of it is perfectly logical.

Greece would love to do the same.

Who are the (imaginary?) people who were supposed to predict the collapse of the Baht?

The point is that the BOT are closely monitoring the Baht & very likely buying dollars to prevent it skyrocketing. It is being boosted by short-term investors buying government bonds paying a higher rate than US or EU bonds.

The governor should be allowed to do his job without political interference.

Almost anything worth more than 1 Baht is worth somebody messing around in it.

[MaxLee]

So Kittirat, the master of white lies, is showing his TRUE colors yet again, in an attempt to not only save his honor, but also his under the table rugged bloody assets that decrease in value thanks to the strong Baht...

Pigs are pigs and will always be in ancient Thai-Chinese feudal politics mafia communities... where white lies are an accepted common family clan trait...

[geriatrickid]

So, putting one of their men to chair the BOT wasn't enough maybe because he (Virabongsa) doesn't always toe the party line.

Now they want a yes man as governor. Is this another order from Dubai?

Party line? Hardly. Perhaps one should accept the simple answer:

1. The job was too much for the man or,

2. The Bank fonctionnaires disagree with the government and have acted independently a la Yes Minister with bureaucrats ignoring government requests and policy.

In either case, the minister has made a serious blunder by discussing the issue in public. It is just not done, ever. It is the minister that should resign now for making this serious error.

[khaowong1]

I am pretty sure they can find a member of a certain family from the north of Thailand to happily take over the BOT helm.

After all, it's for the good of the country.

A certain, over weight sister comes to mind.

[jackspratt]

The 'mouth' is at it again.

A point of clarification - are you referring to the forgetful white liar in the OP, or the queen of overblown rhetoric in post #2?

[rubl]

What was the name again of a former BoT governor who was dealt the joker and made personally responsable for the giganormous loss in defending the Thai Baht as instructed by the then government?

[Thaddeus]

So, putting one of their men to chair the BOT wasn't enough maybe because he (Virabongsa) doesn't always toe the party line.

Now they want a yes man as governor. Is this another order from Dubai?

Party line? Hardly. Perhaps one should accept the simple answer:

1. The job was too much for the man or,

2. The Bank fonctionnaires disagree with the government and have acted independently a la Yes Minister with bureaucrats ignoring government requests and policy.

In either case, the minister has made a serious blunder by discussing the issue in public. It is just not done, ever. It is the minister that should resign now for making this serious error.

And the chances of that happening are?

Answer. Zero.

He's a Minister, and Thai, in a government (small g) that was elected in a landslide (small l) he doesn't make mistakes, do you not know this?

[bigbamboo]

The 'mouth' is at it again.

A point of clarification - are you referring to the forgetful white liar in the OP, or the queen of overblown rhetoric in post #2?

Kittirat the lying king of course! For the country's sake he really should not be allowed to speak in public.

[hellodolly]

So, putting one of their men to chair the BOT wasn't enough maybe because he (Virabongsa) doesn't always toe the party line.

Now they want a yes man as governor. Is this another order from Dubai?

Party line? Hardly. Perhaps one should accept the simple answer:

1. The job was too much for the man or,

2. The Bank fonctionnaires disagree with the government and have acted independently a la Yes Minister with bureaucrats ignoring government requests and policy.

In either case, the minister has made a serious blunder by discussing the issue in public. It is just not done, ever. It is the minister that should resign now for making this serious error.

Who cares if he makes a serious err.

Thailand has already given the OK to Thai Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong to lie no restrictions.

For all we know this might just be another lie.

[waza]

Unbelievable political interference.............

Red democracy in action

[NongKhaiKid]

BANGKOK, April 19 Thai Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong admitted today that he has contemplated firing the central bank governor on a daily basis, but has not done so as he is not legally bound to raise the axe.

Does this mean that he can't legally sack the bot governor?

In which case the headline is extremely misleading

This is an oh so Thai way of mishandling an important issue. The question of dismissal should not be aired in public as the governor's position is now compromised as his competence is in doubt. If the Finance Minister has the authority to remove the governor and he's not doing his job he should be interviewed about the matter and told to fall in line with government policy but if the situation is too serious get on with the sacking. If the Finance Minister has no authority he should have kept his mouth shut instead of trying to look big and get cheap publicity

[notmyself]

The problem is the 18m ton of rice which cannot be sold while the Baht is so strong.

[A Member]

BANGKOK, April 19 Thai Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong admitted today that he has contemplated firing the central bank governor on a daily basis, but has not done so as he is not legally bound to raise the axe.

Does this mean that he can't legally sack the bot governor?

In which case the headline is extremely misleading

This is an oh so Thai way of mishandling an important issue. The question of dismissal should not be aired in public as the governor's position is now compromised as his competence is in doubt. If the Finance Minister has the authority to remove the governor and he's not doing his job he should be interviewed about the matter and told to fall in line with government policy but if the situation is too serious get on with the sacking. If the Finance Minister has no authority he should have kept his mouth shut instead of trying to look big and get cheap publicity

If these two have been at odds no doubt " Face " comes into play and the Finance Minister has managed a very public stab in the back

[Baerboxer]

Why not independent people are not wanted in the Thai system. They prevent politicians from profiting from the baht like in 1997. It is funny though that all those Thai visa voices that were predicting the collapse of the baht when Yingluck came to power are so mute nowadays.

A strong baht has more advantages than a weak baht. Everybody knows that except for the English and the americans who are printing money like crazy.

What a load of nonsense. Have a read of some of the more knowledgeable posters on this and other TV threads, and you can always try googling economics and monetary policies.

Perhaps you should share your economic savvy with the governments of the US,UK, Japan and Eurozone. I'm sure they'd give you an appropriate response.

Do you really think PTP are responisble for the current strength of the baht, and are building a sound long term strong economic base?