A key priority for the next governor of the Bank of Thailand (BoT) will be to ensure that the baht does not strengthen abnormally due to market distortions, according to Finance Minister Pichai Chunhavajira.
Mr Pichai said on Monday that the ongoing selection process to name the new BoT governor will be completed as quickly as possible, although it is unlikely to be ready for submission to the cabinet this week.
From the two shortlisted candidates submitted by the selection committee, one will be chosen for final vetting, which may take additional time due to formal qualification procedures.
It was reported last week that Mr Pichai may soon nominate a suitable candidate for cabinet approval to head the central bank, replacing Sethaput Suthiwartnarueput, who is scheduled to complete his term at the end of the current fiscal year on Sept 30.
Earlier, the selection committee picked Vitai Ratanakorn, president of the Government Savings Bank, and Roong Mallikamas, deputy governor for financial institutions stability at the central bank, as the two finalists, according to a source from the ministry.
Vitai: Govt Savings Bank president
On Monday, Mr Pichai stressed that the ideal candidate must understand both fiscal and monetary policy and be capable of working closely with the Finance Ministry and coordinating economic management.
"I know both candidates personally and have had many discussions with them. I understand their thinking and character well, and I believe either of them will be able to work collaboratively with the government," he noted.
One of the core policy goals, he added, will be to address the issue of the baht's abnormal appreciation.
"Thailand has unique market characteristics. If the Finance Ministry and BoT work together with mutual understanding, we can let the baht move according to appropriate market mechanisms without unnecessary interventions," Mr Pichai said.
Regarding the recently unveiled 115-billion-baht economic stimulus package, Mr Pichai affirmed that all budget usage must comply with established rules and be completed by the end of the next fiscal year, no later than Sept 30 next year.
Roong: Deputy BoT governor
While some critics have labelled the measure as short-term, he believes it can lay the foundation for long-term policy development.
"Thailand's structural problems are well known -- water, roads, electricity, land use regulations, and overlapping laws. Once we recognise these issues, we must address them.
"[Investors] ask whether our infrastructure and regulatory environment are ready for long-term commitments... Solving these issues is crucial to building investor confidence," he said.