Former IMF economist Veerathai to head Thai Central Bank

[webfact]

Former IMF Economist Veerathai to Head Thai Central Bank
by Suttinee Yuvejwattana

BANGKOK: -- Veerathai Santiprabhob, a former economist at the International Monetary Fund, has been named the new governor at the Bank of Thailand.

Veerathai, 45, takes charge Oct. 1 after Prasarn Trairatvorakul steps down following a five-year term that ends Sept. 30. Finance Minister Sommai Phasee’s selection received Cabinet approval Tuesday and still needs a formal endorsement from the king, Minister of Justice Paiboon Koomchaya said.

The new chief will grapple with falling exports and deflation in an economy that grew at the slowest pace in four years in 2014, with policy space limited by the prospect of higher U.S. interest rates and diminished firepower after two unexpected rate cuts this year. Elections have been delayed until next year by coup leader-turned-Prime Minister Prayuth Chan-Ocha, adding to the uncertainty.

Full story: http://www.bloomberg.com/news/articles/2015-07-07/former-imf-economist-veerathai-to-head-thailand-s-central-bank

-- Bloomberg 2015-07-07

[catterwell]

Both lead candidates, Veerathai and Supavud, were well qualified for the job. Congratulations to Veerathai, and good luck!

[gazzasore]

People should Read

"The Confessions of an Economic Hitman"

Then you would know the IMF and World Banks are Pals with the Devil

Shorely what's going in Greece would open up eye's

[elgordo38]

I hope he is the one previously mentioned that would weaken the baht.

[webfact]

NEW BOT GOVERNOR
Economists hail BOT appointment
Erich Parpart
The Nation


Veerathai

BANGKOK: -- Economists have welcomed the appointment of Veerathai Santiprabhob as the Bank of Thailand's governor, who will start his five-year term on October 1.

At 45, Veerathai is among the youngest governors in the central bank's 73-year history. Legendary Puey Ungpakorn was the youngest, taking the helm at 43. With degrees from Harvard Business School, Veerathai previously worked for the International Monetary Fund (IMF), Siam Commercial Bank and the Stock Exchange of Thailand. He was appointed last year to the central bank's court of directors and serves as a member of the Monetary Policy Committee (MPC).

He is also a member of the government's "superboard" tasked with restructuring state enterprises.

"This is good news and the markets should welcome this appointment," said Prinn Panitchpakdi, country head at CLSA Securities. "There is no need to ask how well qualified he is. He has vast and extensive credentials and his knowledge in macroeconomic issues is the second to none."

Current BOT Governor Prasarn Trairatvorakul's term will expire at the end of September, and Veerathai was one of five applicants for the top job.

The others were Paiboon Kittisrikangwan, a deputy BOT governor; Tongurai Limpiti, also a deputy central bank governor; Supavud Saicheua, managing director of Phatra Securities; and Kiatchai Sophastienphong, a former BOT official. Veerathai was the youngest of the candidates, posing doubts on how he could handle the demanding job.

"He is a straightforward person and fair. His age should not be a factor and I believe that the central bank people will also welcome him thanks to his philosophy of good governance and credibility at all the places he has worked at," Prinn said.

Veerathai's qualifications were also assured by Finance Minister Sommai Phasee, who approved his appointment after the selection committee interviewed the five applicants and shortlisted two of them.

"Both of the final two candidates were well qualified and I have been working with both of them for a long time," Sommai said yesterday after the Cabinet put its stamp of approval on the appointment.

Ampon Kittiampon, chairman of the BOT and the Cabinet's secretary, said Sommai told the Cabinet that age was not the issue and that he was certain Veerathai was up to the job.

"I'm confident that the BOT's staff is professional and there should be no problem working with Veerathai. He is a capable young man," Ampon said.

Kiatkong Decho, a strategist at CIMB (Thailand), said Veerathai's experience at the IMF should help him build connections between the BOT and other central banks.

Kobsidthi Silpachai, head of capital-markets research at Kasikornbank, said Veerathai’s appointment "should facilitate coherent economic policies between the government and the central bank, which is important during these challenging times".

Somjin Sornpaisarn, chief executive officer of TMB Asset Management, said Veerathai had strong knowledge on the economy, having served the MPC and been involved with the superboard.

"I always have respect for Veerathai and I am happy that the BOT will have a young and well-qualified governor to steer its policies," he said. Veerathai's appointment came at the time when the Thai economy is at a crossroads. Prasarn, the incumbent governor, has highlighted a lack of competitiveness in the export sector, which has barred it from reaping full benefits from the global economic recovery.

At present, only tourism and public spending are shoring up the economy. However, mega-projects are yet to kick off while business and consumer confidence remains low, obliging the central bank to cut the policy interest rate twice this year.

Volatility in the financial markets is also expected to increase in line with new global developments.

Somjin said the new governor should concentrate on increasing financial literacy as it is almost as important as financial stability.

Prinn suggested that the central bank look at the possibility of financing infrastructure projects with foreign reserves.In determining the policy rate, it should also weigh the economic outlook rather than only inflation.

Source: http://www.nationmultimedia.com/business/Economists-hail-BOT-appointment-30263974.html


-- The Nation 2015-07-08

[sammygood]

the question is, IMF or not, does he really qualify for a job like this, or is it a GIFT from some business friends ?

[samran]

the question is, IMF or not, does he really qualify for a job like this, or is it a GIFT from some business friends ?

Sommai wrote the rules guaranteeing Central bank independence.

The central bank was one of the only holdouts during the incompetent tenure of the yingluck government which tried to bring the BOT under its control.

No doubt Sommai has chosen someone who is smart enough to do the job, and Wiley enough to maintain the banks independence which will inevitably come under threat when we have a populist government back at the helm post 2016.

[Time Traveller]

Well he couldn't be any worse than the time Junta selected Pridiyathorn Devakula to be central bank governor.

[gazzasore]

Lets just hope his ties to the IMF are well and truly severed

and he doesn't get huge loans from the IMF that Thailand cannot pay Back

[elgordo38]

Central banks, the IMF and all those other secretive groups with just initials seem to form a daisy chain encircling the world(You can include politicians to I guess). They all seem to read from the same playbook. If your a conspiracy theorist you can take it a couple steps further. I have my own opinions on that.

[Srikcir]

the question is, IMF or not, does he really qualify for a job like this, or is it a GIFT from some business friends ?

Sommai wrote the rules guaranteeing Central bank independence.

The central bank was one of the only holdouts during the incompetent tenure of the yingluck government which tried to bring the BOT under its control.

No doubt Sommai has chosen someone who is smart enough to do the job, and Wiley enough to maintain the banks independence which will inevitably come under threat when we have a populist government back at the helm post 2016.

You don't think the Junta will be able to control BOT?

I doubt BOT will take any action on fiscal policy without support from those who control the whole of government. He will be operating in a current government system that lacks any checks and balances, tolerance for conflicting opinions and meaningful economic professionalism.

His only strength initially will be that a short tenure ("you're fired") will go against the Junta's fiscal creditability. Conversely, the longer he holds the governor position, the more vulnerable he becomes to Junta political pressure.

[samran]

the question is, IMF or not, does he really qualify for a job like this, or is it a GIFT from some business friends ?

Sommai wrote the rules guaranteeing Central bank independence.

The central bank was one of the only holdouts during the incompetent tenure of the yingluck government which tried to bring the BOT under its control.

No doubt Sommai has chosen someone who is smart enough to do the job, and Wiley enough to maintain the banks independence which will inevitably come under threat when we have a populist government back at the helm post 2016.

You don't think the Junta will be able to control BOT?

I doubt BOT will take any action on fiscal policy without support from those who control the whole of government. He will be operating in a current government system that lacks any checks and balances, tolerance for conflicting opinions and meaningful economic professionalism.

His only strength initially will be that a short tenure ("you're fired") will go against the Junta's fiscal creditability. Conversely, the longer he holds the governor position, the more vulnerable he becomes to Junta political pressure.

Two things:

A central bank doesn't control fiscal policy. It has nothing to do with it.

Secondly, by law, the BOT govenor can only be sacked for 'gross incompetence'.

No doubt they've put in someone they like, but this finance minister actually wrote the rules for central bank independence and my guess is he want to maintain that when we inevitably have elections and the Thaksin linked cronies make their way back it to power.

The position is very independent.

Edited July 9, 2015 by samran