Finance Minister Pichai Seeks Central Bank Talks on Strong Baht
The incoming Bank of Thailand Governor is expected to collaborate closely with the government to address the currency's 'abnormally strong' performance
Thailand's Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, has signalled his readiness to work closely with the new Bank of Thailand (BOT) Governor, with a key objective being discussions on the baht's strong value.
Pichai revealed that he plans to propose a single candidate for the top central bank job to the Cabinet. While the selection process is being expedited, he cautioned that the name might not be ready for submission this week, as further qualification screenings will be required.
The Finance Minister emphasised his desire for the new BOT Governor to possess a deep understanding of both fiscal and monetary policy, and crucially, to be able to foster a close working relationship with the government.
"There are two applicants, each with a different area of understanding," Pichai said. "Both have a grasp of the fiscal and financial sectors. I know both applicants personally and have had frequent discussions with them, allowing me to thoroughly understand their mindsets and personalities. I anticipate being able to work closely with either of them."
This collaborative approach is intended to tackle pressing issues facing Thailand, particularly the baht's "abnormally strong" value, which Pichai suggested deviates from standard market mechanisms and possesses unique characteristics within Thailand.
He believes that a shared understanding between the Finance Ministry and the central bank would help the baht's value align with market forces without the need for direct intervention.
