Page 29 - ELITE PLUS MAGAZINE VOL 12

The Art and Craft ofGuiding the Central BankPrasarn Trairatvorakul, recently retired governor ofthe Bank of Thailand, reminisces on a meaningful careerAjarn Puey was a role model, an icon who reflected the values of the BoT, It is regrettable that the younger generation at the BoT do not know much about himPrasarn Trairatvorakul, former governor of the Bank of Thailand (BoT), does not fit the image of a party-spoiling central banker. William McChesney Martin, former chairman of the US Federal Reserve Bank, described the position as that of “a chaperone who orders the punch bowl removed just when the party is really warming up”.The 63-year-old economist, however, is more reminiscent of a soft-spoken academic expert. But beneath that exterior, Mr Prasarn has nerves of steel that helped him deal with repeated pressure and intervention from politicians. He refused the previous government’s demands that the central bank cut policy interest rates. He said no to attempts to change the law governing the central bank and the nation’s international reserve to open the way to invest in energy resources and other types of assets. He also refused demands to weaken the Thai baht in order to boost exports.Yet Mr Prasarn is cautious when asked about the central bank’s independence. “Undeniably, the BoT is part of the government and the central bank is duty bound to help the country move forward,” he said. “The BoT needs to have its policy approved by the central government. But in execution of the approved policy, the BoT has operational independence.”Mr Prasarn retired from the BoT last year in a memorable way. Apart from a speech and farewell party, he penned a final “Letter to Ajarn Puey”, published in BoT Magazine. This year he printed a book to mark the centennial of Puey Ungphakorn, former BoT governor and senior alumni at his alma mater, Assumption College. The book is a compilation of his columns published in BoT Magazine from March 2012 until his retirement last year. Mr Prasarn used the “Letter to Ajarn Puey” column to communicate with BoT staff and express his ideas and feelings.In reality, Mr Prasarn, who started his career at the BoT in 1983, never worked with the legendary BoT governor.“Ajarn Puey was a role model, an icon who reflected the values of the BoT,” he said to explain how the column came to be presented. “It is regrettable that the younger generation at the BoT do not know much about him.”The book, downloadable from the BoT website, is recommended for executives and students who wish to understand Thai microeconomics, and essential for those who one day hope to lead the BoT, one of the country’s most important institutions.Elite+ 27