An independent panel on Friday picked the government-backed candidate as the new chairman of the board of the Bank of Thailand, two government sources told Reuters.
The selection of Somchai Sujjapongse, a former finance ministry permanent secretary, comes after a failed effort to appoint Kittiratt Na-Ranong, a ruling Pheu Thai Party loyalist and former finance minister, to the position last year, which followed concerns among several former central bank chiefs and hundreds of economists about a potential weakening of the institution's independence.
The central bank board chair 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. A new central bank governor will be chosen this year.
The government sources declined to be identified because they were not authorised to speak to media on the issue. The panel chief said the selection process was completed but declined to identify the successful candidate.
Mr Somchai was selected ahead of the central bank's nominee, former Thammasat University head Surapon Nitikraipot and the appointment must be approved by the cabinet and the king. The government's nominations have been closely watched following its frequent clashes with the central bank over monetary policy and the administration's repeated calls for rate cuts.
The government's initial candidate, Mr Kittiratt was initially picked by the panel, according to several sources. However, in December the Council of State said a recent political role he had held meant he was ineligible.
The government has said it is not seeking to apply pressure to the BoT and respects its independence.
