Thailand’s central bank was in trouble when the global financial crisis swept across Asia in 1997. The Banker asks Bank of Thailand deputy governor about the current state of play and the master plan for the financial sector.Like many Thais, Thirachai Phuvanat-Naranubala remembers clearly the dramatic events of July 2, 1997, when the Bank of Thailand (BoT) announced its decision to allow the national currency, the baht, to float. That fateful day was the tipping point of the 1997-98 financial crisis that swept across Asia and roiled emerging markets worldwide. It was also a day when the central bank was in the spotlight, not to mention in the firing line for tycoons who had borrowed offshore and failed to hedge the currency risk.
Mr Phuvanat-Naranubala, then director of financial company supervision, was promoted in 1998 to deputy governor. When he met The Banker, it was also July 2 but, rather than dwell on the past, the conversation focused on future challenges to Thailand’s economic resurgence. Selected highlights follow.
