The selection committee tasked with selecting the new board chairman of the Bank of Thailand (BoT) has finalised the nomination for the position, without providing the name of the candidate selected.
Nevertheless, Kittiratt Na-Ranong, a former commerce minister, is expected to be selected, despite opposition from various groups.
On Monday, the selection committee convened for a third time to select the successor to Porametee Vimolsiri, whose term as chairman ended last month.
According to Satit Limpongpan, the chairman of the selection committee, the selection process was completed on Nov 11. The next step involves the committee's secretary submitting the chosen candidate's name to the Finance Minister, who will then present it for cabinet approval.
Upon receiving cabinet approval, the name will be forwarded to the King for royal endorsement.
The panel's discussions on Monday included three candidates, with no changes to the list. Mr Kittiratt, a former commerce minister who was an advisor to former premier Srettha Thavisin, was proposed by the Finance Ministry.
The other two candidates, proposed by the Bank of Thailand, are former Energy Ministry permanent secretary Kulit Sombatsiri and Surapon Nitikraipot, president of Thammasat University Council and an independent director of PTT Plc.
While the committee refrained from announcing the final decision, Mr Kittiratt is widely expected to be selected, according to a source in the financial sector who requested anonymity.
Several groups, including the Economics for Society Group -- comprising 227 economists and four former Bank of Thailand governors (Pridiyathorn Devakula, Tarisa Watanagase, Prasarn Trairatvorakul, and Veerathai Santiprabhob) -- recently expressed their opposition to Mr Kittiratt's appointment. They argue that the board chairman of the central bank should remain independent of political influence.
On Monday, protesters, including followers of the late revered monk Luangta Maha Bua Yannasampanno, gathered outside the central bank's headquarters to submit letters opposing what they see as political interference in the central bank.
The protesters argued that Mr Kittiratt, whom they consider to be politically aligned, could compromise the bank's independence. They also presented a petition with around 50,000 signatures, demanding that the selection committee address these concerns.
Mr Kittiratt previously served as deputy leader and chief economic strategist for the Pheu Thai Party. He has been critical of the central bank's interest rate policy and its regulatory independence.
Kitpon Praipaisarnkit, vice-president of UOB Kay Hian Securities Thailand, said if Mr Kittiratt is appointed the new chairman of the central bank board as anticipated, foreign investors may be prompted to divest from risky assets in Thailand such as stocks and bonds due to concerns over the central bank's independence.
That would put pressure on the baht to depreciate further if politics were able to intervene in the central bank's role, affecting the country's credibility in terms of checks and balances, he told the Bangkok Post.
"However, I personally believe the chairman alone cannot dictate the whole central bank's board and the board itself does not have a say in determining the interest rates, which are solely decided by the Monetary Policy Committee," Mr Kitpon noted.
"I don't see an issue with a Bank of Thailand chairman coming from a political background as long as that person is knowledgeable about monetary policy and has a clean record. Unfortunately, in Mr Kittiratt's case, this may not be the case," he said.
Raising concerns about the central bank board chairman's possible use of international reserves to support the government's purposes, Mr Kitpon said in other countries the central bank's reserves are used to buy high-risk assets, such as real estate investment trusts.
"If the Bank of Thailand in the future wants to implement quantitative easing and pumps in more money to buy such risky assets, such assets would be kept in the central bank's portfolio. Again, the board chairman alone cannot do this. There might be someone who makes such a proposal, such as the central bank governor, for the board to decide."
In terms of interest rates, Mr Kitpon said differences between the Finance Ministry and the central bank over rate cuts will tend to ease following the central bank's decision to trim the rate by 25 basis points last month to 2.25%.
"The Finance Minister [Pichai Chunhavajira] is right in terms of rate cuts but there should be a channel of talks between the central bank and the ministry. Also, given the inflation-targeting stance of the central bank, I see no reason why rates would be cut further given the current economic conditions and inflation."