Bangkok: The Social Economics Group has raised concerns about potential political interference in the Bank of Thailand, potentially leading to economic instability and a lack of credibility for the institution. The group has joined in signing a petition that calls for the seven selection committee members to uphold the principle of “preserving the independence of the Bank of Thailand” during the selection process for the board chairman and committee members on November 11.
According to Thai News Agency, the Economics for Society Group issued a statement emphasizing concerns over political domination of the Bank of Thailand through the selection of board members. The statement, supported by four former governors of the Bank of Thailand, academics, and lecturers from various institutes, highlighted the risks of appointing individuals with strong political connections to key positions within the central bank.
The chairman of the selection committee has postponed the vote for the chairman and board members of t
he Bank of Thailand to Monday, November 11. Some groups and individuals close to political factions have voiced objections, citing support for Mr. Kittiratt Na Ranong, who is viewed as capable of serving as chairman.
The Social Economics Group, however, stated that their concern lies not with individual qualifications but with ensuring that the chairman is free from political affiliations and pressures. They argue that political influence could compromise the central bank’s credibility and long-term economic stability, benefitting certain business groups or individuals.
The group also addressed arguments advocating for political intervention in the Bank of Thailand, referencing past crises such as the 1997 Tom Yum Kung crisis. They countered that using past mistakes as justification for intervention is flawed, as global empirical data often points to negative outcomes from such interference.
The group stressed the importance of central bank independence in maintaining credible monetary policy. Political co
ntrol could introduce unpredictability and risk, undermining economic stability and the ability to manage inflation. They emphasized the need for transparency and accountability in central bank operations, recognizing that while mistakes can occur, these should be addressed through open policy processes.
The Social Economics Group, along with various sectors, is calling on the selection committee to carefully consider the global standards for central bank executives, prioritizing the long-term economic benefits and stability of the nation over political influences. The group aims to reinforce the Bank of Thailand’s independence from short-term political pressures.
As of the latest update, 830 individuals have signed in support of the Bank of Thailand and the Social Economics Group’s call for concern.