State legal advisers declare Pheu Thai loyalist ineligible for Bank of Thailand chair
Kittiratt Na-Ranong has been deemed ineligible for the position of Bank of Thailand chairman, according to state legal advisories. The stipulations require that a candidate must not have held a political position for at least one year prior to consideration.
In a statement made on Tuesday, Mr. Kittiratt expressed respect for the Council of State’s decision. He acknowledged the public support he received for his candidacy and thanked those who nominated him before his name was forwarded to the Finance Minister.
“Those responsible for any decision on the process have the right and duty to make such decisions. I respect the outcome,” he commented.
Reports indicate that the Council of State found him disqualified for the role due to his position as an adviser to former Prime Minister Srettha Thavisin last year. The eligibility criteria specify that a candidate must not have held any political office for at least one year prior to their nomination.
The Pheu Thai Party defended Mr. Kittiratt’s candidacy, arguing that his role as a personal adviser should not be classified as a political position as he was not compensated by the state. Nevertheless, the Council of State appeared to disagree.
Pakorn Nilprapunt, secretary-general of the Council of State, declined to provide further clarification, citing other commitments.
Mr. Kittiratt’s nomination faced significant backlash over concerns regarding political interference in the independent central bank, with more than 800 economists and former central bank leaders signing an open letter opposing his appointment.
During his tenure as finance minister from 2012 to 2014, he frequently clashed with the central bank, and just last week, he advocated for lower interest rates at an economic seminar in Bangkok to prevent an “economic disaster.”
The central bank is currently in need of a new chairman to succeed Porametee Vimolsiri, whose term ended in September. He will continue in the role until a successor is appointed.
Finance Minister Pichai expressed he was not yet informed of the Council’s decision but acknowledged that if Mr. Kittiratt is deemed unqualified, a new nominee would be required. He stated, “If Mr. Kittiratt doesn’t pass, we must discuss the next steps and act swiftly to propose another candidate.”
While the chairman does not directly dictate interest rate policy, they play a crucial role in selecting the Monetary Policy Committee, which consists of the governor, two deputy governors, and four external experts, influencing future central bank leadership decisions.
Mr. Kittiratt, a former president of the Stock Exchange of Thailand, asserted his capability to effectively perform as chairman if selected, emphasizing that the role does not grant power over monetary policy decisions, only the opportunity to provide insights.
