Ex-BoT chief warns credibility is at stake with governor pick

Former Bank of Thailand governor Tarisa Watanagase sent an open letter to Finance Minister Pichai Chunhavajira on Tuesday, calling for the central bank's independence in the ongoing selection process for a new governor.

- SOMRUEDI BANCHONGDUANG

The letter indicated there are two candidates on the finance minister's short list, and he is expected to propose one to the cabinet for approval.

"The most important qualification for a central bank governor is the ability to formulate policy independently, free from political interference. This principle — known as central bank independence — is what ensures the credibility of the central bank's policies, and by extension, the country's credibility in the eyes of foreign investors," stated the letter.

However, this does not imply the central bank and government must be adversaries. Mrs Tarisa noted that cooperation is essential.

She said it is crucial to recognise the two institutions have different policy horizons: the government often focuses on short-term goals, while the central bank must prioritise long-term outcomes.