Bank of Thailand
Encyclopedia
The Bank of Thailand is the central bank
of Thailand
.
The Bank of Thailand Act, B.E.2485 was later amended in order to put emphasis on BOT’s social responsibility, to create a mechanism to guard against economic crisis, as well as to set up BOT’s decision making process to ensure good governance and transparency in the organization. Moreover, members of the public will be able to audit and increase the understanding of the BOT’s operations. The Bank of Thailand Act, B.E.2551 came into force with effect from 4 March 2008.
List of Governors of the Bank of Thailand
It defines its roles as:
Since May 2000, the bank has targeted inflation
, replacing money supply
as the core of its monetary policy. Its current target for core inflation
is 0.5%-3.0%.
Interest rate
s are designated by the Monetary Policy Committee, which comprises three officials from the Bank of Thailand and four other experts.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
.
History
The Bank of Thailand (BOT) was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 vesting upon the Bank of Thailand the responsibility for all central banking functions. The Bank of Thailand started operations on 10 December 1942.The Bank of Thailand Act, B.E.2485 was later amended in order to put emphasis on BOT’s social responsibility, to create a mechanism to guard against economic crisis, as well as to set up BOT’s decision making process to ensure good governance and transparency in the organization. Moreover, members of the public will be able to audit and increase the understanding of the BOT’s operations. The Bank of Thailand Act, B.E.2551 came into force with effect from 4 March 2008.
List of Governors of the Bank of Thailand
- H.H.Prince Vivadhanajaya (27 Nov.1942 - 16 Oct. 1946)
- Mr. Serm Vinicchayakul (17 Oct. 1946 - 24 Nov. 1947)
- Mr.Leng Srisomwongse (25 Nov.1947 - 2 Sept.1948)
- H.H.Prince Vivadhanajaya (3 Sept.1948 - 2 Dec.1948)
- Mr.Leng Srisomwongse (3 Dec.1948 - 3 Aug.1949)
- M.L.Dej Snidvongs (4 Aug.1949 - 29 Feb.1952)
- Mr.Serm Vinicchayakul (1 Mar. 1952 - 24 Jul. 1955)
- Mr.Kasem Sriphayak (25 Jul. 1955 - 23 Jul. 1958)
- Mr. Jote Guna-Kasem (24 Jul. 1958 - 3 May 1959)
- Dr. Puey Ungphakorn (11 Jun. 1959 - 15 Aug. 1971)
- Mr.Bisudhi Nimmanhaemin (16 Aug. 1971 - 23 May 1975)
- Mr.Snoh Unakul (24 May 1975 - 31 Oct. 1979)
- Mr.Nukul Prachuabmoh (1 Nov. 1979 - 13 Sep. 1984)
- Mr.Kamchorn Sathirakul (14 Sep. 1984 - 5 Mar. 1990)
- Mr.Chavalit Thanachanan (6 Mar. 1990 - 30 Sep. 1990)
- Mr.Vijit Supinit (1 Oct. 1990 - 1 Jul. 1996)
- Mr.Rerngchai Marakanond (13 Jul. 1996 - 28 Jul. 1997)
- Mr.Chaiyawat Wibulswasdi (31 Jul. 1997 - 4 May 1998)
- M.R.Chatu Mongol Sonakul (7 May 1998 - 30 May 2001)
- M.R.Pridiyathorn Devakula (31 May 2001 - 6 Oct. 2006)
- Mrs.Tarisa Watanagase (8 Nov. 2006 - 30 Sep. 2010)
- Mr.Prasarn Trairatvorakul (1 Oct. 2010 - Present)
Roles and Responsibilities
The bank of Thailand's mission is to provide a stable financial environment for sustainable economic growth in order to achieve continuous improvement in the standard of living of the people of Thailand.It defines its roles as:
- Print and issue banknoteBanknoteA banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. In addition to coins, banknotes make up the cash or bearer forms of all modern fiat money...
s and other security documents - Promote monetary stability and formulate monetary policies
- Manage the BOT’s assets
- Provide banking facilities to the government and act as the registrar for the government bonds
- Provide banking facilities for the financial institutionFinancial institutionIn financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
s - Establish or Support the establishment of payment system
- Supervise and examine the financial institutions
- Manage the country’s foreign exchange rate under the foreign exchange system and manage assets in the currency reserve according to the Currency Act
- Control the foreign exchange according to the exchange control act
Since May 2000, the bank has targeted inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
, replacing money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
as the core of its monetary policy. Its current target for core inflation
Core inflation
Core inflation is a measure of inflation which excludes certain items that face volatile price movements, notably food and energy.The preferred measure by the Federal Reserve of core inflation in the United States is the core Personal consumption expenditures price index...
is 0.5%-3.0%.
Interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
s are designated by the Monetary Policy Committee, which comprises three officials from the Bank of Thailand and four other experts.
See also
- Thai bahtThai bahtThe baht is the currency of Thailand. It is subdivided into 100 satang . The issuance of currency is the responsibility of the Bank of Thailand.-History:The baht, like the pound, originated from a traditional unit of mass...
- Ministry of Finance (Thailand)Ministry of Finance (Thailand)The Ministry of Finance of the Kingdom of Thailand is a Cabinet Ministry in the Government of Thailand. It is considered to be one of the country's most important Ministry...
- Economy of ThailandEconomy of ThailandThe economy of Thailand is a newly industrialized economy. It is a heavily export-dependent economy, with exports accounting for more than two thirds of gross domestic product ....
- Bank of Thailand MuseumBank of Thailand MuseumBank of Thailand Museum is a museum in Bangkok, Thailand. The museum is housed in the Bang Khun Prom Palace, the former residence of HRH Prince Paribatra Sukhumbhand, who was the 33rd son of King Chulalongkorn.-Displays:...