Thailand will start the selection process for a new central bank governor in March to replace incumbent Sethaput Suthiwartnarueput, whose five-year term ends in September, Finance Minister Pichai Chunhavajira said on Monday.
Mr Pichai, who did not provide details on the process, made the remark while announcing the government had nominated for another post, chair of the Bank of Thailand, former permanent secretary for finance Somchai Sujjapongse.
The nomination of Mr Somchai comes after a failed effort to appoint Kittiratt Na-Ranong, a ruling Pheu Thai Party loyalist and former finance minister, in the chair post, which met resistance last year from hundreds of economists and several former central bank governors concerned about government interference in the independent Bank of Thailand.
The central bank board chair, a post currently vacant, has no direct say in monetary policy but heads the board which picks four members to sit on the monetary policy committee with the governor and two deputy governors. The government's nominations have been the subject of media interest and scrutiny after its frequent clashes with the central bank over monetary policy and its repeated calls for rate cuts.
The government has insisted it is not seeking to apply pressure and respects the central bank's independence.
Under selection rules, the government is allowed to nominated one individual while the central bank may put fourth two names for chair. The selection committee for the chair position expects to pick a candidate at its meeting on Feb 28, committee head Sathit Limpongpan said last week.
Central bank governor Sethaput, 60, a former World Bank economist was appointed in 2020 under a military-backed government and cannot seek a second term as he has reached retirement age.
After the populist Pheu Thai party took office in 2023, he disagreed with some of its policies and long resisted calls for a cut in interest rates, while frequently giving speeches that stressed the need for central banks worldwide to be remain independent.