The Finance Ministry expects to complete the final qualifications check for the new chairman of the Bank of Thailand board in April before forwarding his name to the cabinet for appointment.
The board chairman selection committee recently notified the ministry it nominated Somchai Sujjapongse, a former finance permanent secretary, according to a ministry official who requested anonymity.
The official said the ministry expects no problems with Mr Somchai's qualifications.
The law requires state agencies to recheck Mr Somchai's qualifications to see whether he was previously involved in legal complaints or declared bankrupt, said Lavaron Sangsnit, finance permanent secretary.
The state agencies conducting the inspection include the Royal Thai Police Office and the Office of the National Anti-Corruption Commission.
Satit Limpongpan, chairman of the selection committee, previously refused to disclose the nomination. Pundits expect Mr Somchai to be appointed as the new chair of the central bank's board.
Mr Somchai, 64, is a highly regarded Thai economist and civil servant with extensive experience in the financial sector. Born in 1961, he holds a bachelor's degree in economics from Chulalongkorn University and both a master's degree and a PhD in economics from Ohio State University in the US.
The government is setting up another committee to select a new central bank governor to succeed Sethaput Suthiwartnarueput, whose term expires in September.
The Finance Ministry is working on this selection process and the appointment of the new board chairman simultaneously, said Mr Lavaron.
Kuala Lumpur-based Maybank said naming Mr Somchai as the new central bank board chair could strengthen policy coordination.
"The news that the post will reportedly go to the government's nominee Mr Somchai is likely to improve investor confidence. It raises the likelihood of closer coordination with fiscal policymakers," Maybank said in a research note co-written by director of macro research Erica Tay.
Mr Somchai was nominated by the Finance Ministry after its previous choice of Kittiratt Na-Ranong was blocked.
The note predicted the appointment will support last week's policy interest rate cut of 25 basis points, which eases the financial burden of the industrial sector.
"Manufacturing activity is expected to stabilise at a pace of 1-2% growth this year. The rate cut to 2.00%, its second in the central bank's cycle, will relieve the financial burden for industry somewhat," said Maybank.
"Yet structural issues will require deft policy coordination between the central bank and government. With elevated uncertainty surrounding US President Donald Trump's threat of reciprocal tariffs, the authorities may need to prepare more stimulus to respond to adverse scenarios," noted the research.
Meanwhile, analysts said the transfer of matured long-term equity funds (LTFs) to new Thai ESG funds should reduce selling pressure on the Thai bourse.
Viriya Lappromrattana, senior executive vice-president of I V Global Securities, said transferring matured LTFs worth 188 billion baht to the new Thai ESG fund should ease investors' fears and curb LTF redemption, lifting the Stock Exchange of Thailand (SET) from less than 1,200 points.
The Thai bourse has lost 200 points or 15% this year, twice the dip in the Philippine and Indonesian stock markets, she said
The Finance Ministry plans to allow transfers of LTFs to Thai ESG Fund X, with a maximum tax exemption of 500,000 baht, up from the Thai ESG fund exemption limit of 200,000 baht.
