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Tarisa remains cool in central bank's hot seat

Bank of Thailand Governor Tarisa Watanagase won much support when she took office.



She is a model for career women, the first female governor since the central bank was established 66 years ago.

Yet, unlike many of her predecessors, it seems Tarisa may be the governor who has suffered the most from frequent rumours about dismissal.

Most of the stories derived from the controversial 30-per-cent capital reserve rule, imposed to stem baht speculation.

Less than two months after her appointment in 2006, Tarisa faced her biggest storm when the Bank of Thailand imposed the requirement, which sharply battered the SET index - plunging a record 20 per cent in a day - and was heavily criticised for causing some foreign investors to take flight.

Amid waves of pressure for her to resign, she won the backing of former finance minister MR Pridiyathorn Devakula.

When Chalongphob Sussangkarn took Pridiyathorn's seat, there were reports of conflicts between the central bank and the new minister, who denied there were such conflicts.

The issue became hot again when the Finance Ministry welcomed the new minister, Surapong Suebwonglee, who favoured a market-based approach to tackle the baht appreciation.

Eventually, the measure was scrapped, in February. But now the central bank appears to be running into another conflict, this time concerning interest-rate policy.

Somehow, Deputy Governor Achana Waiquamdee sensed an increase in tension.

Before the House Committee last week, she declined to answer the question as to who she thought had the best credentials to be the next finance minister. (Yeah, this question comes as the Cabinet reshuffle is scheduled this month.)

Achana did not say if she had any idea in mind, but she said she dared not utter a name, fearing the next question would be who should be the next governor.

Tarisa is expected to scratch her head right now. But at the group interview last week, she managed to compose herself well.

She walked into the room with a broad smile and chatted with ease. Asked if she was tense, she promptly said "No".

"Being right here, I can't succumb to pressure, or I would be unable to continue my job. Now I am less tense. There's no way that tension could rise further," she said with a matter-of-fact face.

Shielding her from pressure is a call for the media not to trail rumours, wherever they may appear.

Another protective source could be her new office, in the new central bank building. Once you step into the steel-and-glass building, you feel safe from the dangers outside.

Also, her office looks homey, with a good view of the Chao Phya River and Rama XIII Bridge. Water has always worked wonders in cooling down people.


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