Key roles and responsibilities of the Bank of Thailand (BOT) are to facilitate economic and financial system through monetary policy implementation in order to accommodate sustainable economic growth at rates that match the country’s potential. The BOT also aims to help creating favorable economic environment that will promote quality of livings of all Thais in the long run.
The BOT’s key task is to maintain financial stability by keeping inflation and exchange rates at appropriate levels in accordance with economic conditions at any given time. Other tasks include banknote circulation management, supervision of financial institutions and payment system, as well as financial consumer protection.
According to the BOT’s strategy roadmap 2012-2016, its vision is “to be an organization of vision and principles that engages with stakeholders in pursuit of Thailand’s sustainable economic well-being.” Its four core values consist of “Principles, Visions, Collaboration, and Humility.”
The BOT’s mission is “to promote a stable financial environment to achieve sustainable and inclusive economic development.”
The ambitious mission can be divided into five categories including:
1. Price stability – The BOT uses available policy instruments to keep inflation at levels suitable with economic conditions and within the target range. Price stability would facilitate investment decision and financial planning of business and household sectors as well as bolster economic growth.
2. Financial stability – The BOT sets rules and regulations to ensure smooth operations in the financial system and enhance supervision potential to tackle systematic risk.
3. Payment system stability – The BOT determine payment policies to promote payment system efficiency and security. In addition to promoting cooperation in development of payment system and electronics clearing system among financial institutions, the BOT also provides infrastructure for payment system to financial institutions to mitigate settlement risks and create confidence of financial consumers.
4. Banknote excellence – The BOT manages circulated banknotes to ensure they are in good shape and adequate for spending demand of the household and business sectors. Besides neat design of banknotes that highlights the Thai identity, the BOT also seeks to apply new and effective counterfeit deterrence features in printing banknotes.
5.Consumer protection on financial services – The BOT ensures consumers of financial services are treated fairly by financial institutions. It also provides relevant knowledge, information, and advices on financial services as well as taking complaints from consumers of financial services and protect them from unfair treatment or fraudulent.
In addition, the BOT also acts as economic and financial data center that provides comprehensive, well-rounded, and credible information to the public. It releases key domestic and international economic indicators as well as provides explanations for any changes and constantly shares views on economic prospect.
To communicate with the public on monetary policy, the BOT releases policy decision after each meeting of the Monetary Policy Committee (MPC). It also provides reasons and factors behind the decision to keep, raise, or cut policy rate as well as the MPC’s view on economic trend and response to queries from reporters to create clear understanding about the BOT’s stance.
Furthermore, the BOT also releases research notes on economic trend that it uses as assumptions for economic forecast and back policy decision. This information would help the private sector make business decision in accordance with the economic condition and the BOT’s monetary policy direction.
The BOT has assumed the role of Thailand’s central bank for over seven decades. According to the BOT’s history, there were serious efforts to set up a central bank since the 1932 revolution but it took another 10 years for a successful establishment due to political instability and scarcity of monetary and banking experts.
Since its commencement date on December 10, 1942, a total of 22 governors of BOT have been appointed. The present governor, Mr. Prasarn Trairatvorakul, has assumed his position since October 1, 2010. There are three deputy governors and 10 assistant governors administrating various work groups at the BOT and their details can be found at the executive directory. The Board of BOT will determine overall policies of the central bank while policies and guidelines of specific issues will be decided by separate committees such as the Monetary Policy Committee (MPC), the Financial Institutions Policy Committee (FIPC), and the Payment Systems Committee (PSC).
To grant public access to economic, financial, and banking data as well as allowing them to probe the BOT’s operations, various channels have been arranged such as website, Newsroom, Library & Archives services, Museum visit, and BOT visit activities. The BOT also conductssocial activities such as awarding scholarships and financial knowledge enhancement projects.
Moreover, the BOT's performance can also be tracked from its annual report and the weekly financial status report on the BOT's website.