Kittiratt Na-Ranong: Frontman for Pheu Thai’s hostile takeover of central bank?

Former finance minister Kittiratt Na-Ranong’s nomination to head the Bank of Thailand (BOT)’s executive board has triggered widespread controversy amid fears of potential political interference in the central bank.

Kittiratt’s recent nomination by the Finance Ministry has drawn strong objections from former central bank governors, economists, and academics, who warn his close ties with the ruling Pheu Thai Party will jeopardise the bank’s independent oversight of the economy.

The 66-year-old Kittiratt is a former deputy leader of the ruling party who served as deputy premier, commerce minister, and finance minister in the Pheu Thai-led government of Yingluck Shinawatra.

Finance Minister Pichai Chunhavajira, who doubles as deputy prime minister, is from the ruling party.

The BOT executive board has the power to appoint experts to the bank’s three major boards in charge of policy – the Monetary Policy Committee (MPC), Financial Institutions Policy Committee, and Payment Systems Committee.

The MPC has been repeatedly criticised by Pheu Thai for keeping the policy interest rate “too high”, which the party blames for economic problems including the surge in household debt.

The panel, chaired by BOT governor Sethaput Suthiwartnarueput, finally cut its key interest rate by 25 basis points to 2.25% in mid-October following months of pressure from the government. It was the BOT’s first rate cut since May 2020.

Fear of intervention

The BOT board chair was left empty after its previous holder, Porametee Vimolsiri, completed his allotted term on September 16. By tradition, three people are nominated for the post – one by the Finance Ministry and two by the central bank.

The BOT has nominated former Energy Ministry permanent secretary Kulit Sombatsiri and ex-rector of Thammasat University Prof Surapon Nitikraipot.

After news broke that the ministry had nominated Kittiratt, a group calling itself “Economists for Society” on October 30 issued a statement calling for the central bank’s independence to be protected against short-term political interests to ensure Thailand’s economic stability and growth in the long term.

The statement was signed by 227 individuals, including four former Bank of Thailand governors – Pridiyathorn Devakula, Prasarn Trairatvorakul, Veerathai Santiprabhob, and Tarisa Watanagase – as well as numerous economists and academics.

More than 700 former employees of the central bank also signed an open letter calling for the selection of the BOT’s executive board chairman and other members to be free from political intervention.

Separately, an activist group gathered last week at BOT headquarters to submit a petition signed by 20,000 people it said were opposed to interference with the central bank’s work.

A counter-campaign launched online, meanwhile, gathered over 2,000 signatures in support of Kittiratt’s nomination.

Amid the discord, the selection committee headed by former Finance Ministry permanent secretary Sathit Limpongpan postponed its decision until Monday (November 11), saying it required more information.

A man of many interests

Born in Bangkok on August 3, 1958, Kittiratt earned a degree in economics from Chulalongkorn University in 1980 followed by a master’s in business administration (MBA) from the same university’s Sasin Graduate Institute of Business Administration in 1986.

He worked as a senior executive at several securities companies between 1992 and 2001, before becoming president of the Stock Exchange of Thailand from 2001 to 2006. He then held a directorship at the Securities and Exchange Commission (SEC) for two years until 2008.

Kittiratt also worked as deputy director for academic affairs at his alma mater, Sasin, between 2006 and 2010 before becoming president of Shinawatra University, which was then owned by former prime minister Thaksin Shinawatra’s family.

Kittiratt left the helm at Shinawatra University to take up posts as deputy prime minister and commerce minister in the government of Thaksin’s sister, Yingluck, in August 2011. A Cabinet reshuffle in January 2012 saw him retain his deputy premier role but switch to finance minister.

Just a ‘white lie’

Kittiratt was heavily criticised in 2012 after confessing he had told a “white lie” about Thailand’s annual export target. He insisted that exports would grow by 15% despite Yingluck’s government cutting the projection for 2012 to 9% growth.

His interests extend beyond business and politics to sports. He managed Thailand’s national football team in 2002, 2006, and 2008 and was last year appointed president of the Thai League 3 club, Prime Bangkok. Before becoming prime minister last year, Srettha Thavisin backed Kittiratt to run for president of the Football Association of Thailand.

However, Kittiratt passed on the chance and instead accepted the role of PM Srettha’s chief adviser.