HomeDecember 10, 2022 The Bank of Thailand (BOT) will turn 80 years old. December 2-3, the BOT together with the Bank for International Settlements (BIS) held a big seminar BOT-BIS Conference to celebrate 80 years of the BOT
on the topic of “Central Banking Amidst Shifting Ground Central Banking in the midst of a changing world context” There are many issues that are
“New financial risks” that we need to pay attention to, from geopolitical issues.
Strategic competition between the US and China.
The polarization of power until the current of the reverse of globalization
from deglobalization to climate change
In this seminar, the BOT was honored by
Central bank governors from more than 10 countries around the world flew to the forum, such as the president of the European Central Bank.
Governors of the People's Bank of China, Australia, Indonesia, South Korea, New Zealand, Malaysia, Lao PDR, South Africa, etc.
Dr. Sethaput Suthiwart-Narueput, Governor of the Bank of Thailand, said central banks around the world are facing challenges in maintaining economic and financial stability.
Due to the rapidly changing global economic context, especially from the rapidly rising "inflation", the mindset must be changed.
in implementing policies in line with the new context
digital world trend
making it necessary to find the right balance between
Promoting innovation and addressing risks to financial stability and climate change
challenges that have never been faced before
It's difficult to control.
The central bank therefore needs to adjust its outlook, policy guidelines and tools.
To be able to sustainably maintain financial and economic stability, which is the main mission of the central bank.
Seminar participants emphasized the importance of keeping “inflation” within the target.
to build public confidence
through combination
Monetary, fiscal, and exchange rate policies, including effective communication.
To maintain a balance of supporting economic growth along with controlling inflation.
Participants also discussed
Geopolitical issues in Europe and the strategic rivalry between the US and China.
The backlash of globalization
(deglobalization) by the panelists proposed
international organization
play a supporting role
international cooperation and globalization
(globalization) more
An interesting new issue is
Climate change that will affect inflation and economic growth.
The seminar encouraged the central bank to play an urgent role in the transition to an eco-friendly economy, covering both monetary policy to manage the impact of climate change on economic output and inflation, and policy to maintain the stability of financial institutions and the financial system, for example: Formulation of standardized environmental risk assessment guidelines for situation analysis and testing of climate crises on the financial sector.
Including encouraging financial institutions to disclose information on environmental performance.
The topics discussed by the governors of more than 10 central banks are all new risks of the global financial economy that the central bank will have to play a role in the future, including new risks for business operators, especially SMEs and the general public.
to be involved
I was also invited by the Governor of the Bank of Thailand to listen and collect some information to share with each other.
Global financial economy after COVID
amid inflation
Strategic and geopolitical competition between China, the United States, Europe and global climate change are inevitably "new risks" that everyone will face in the future.
"The Wind Changes Direction"