The Role of Central Bank

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The Role of Central Bank
Bank of Thailand (Central Bank of Thailand)

The Bank of Thailand Act was promulgated on April 28, 1942 conferring the status of a juridical person on the Bank of Thailand and allowing it to carry out all central banking functions.
The Bank of Thailand started operations on December 10, 1942. As per the Bank of Thailand Act, 1942, the Minister of Finance is charged with powers to look after the overall functions of the bank. The main objective of the bank is to maintain financial system stability and the soundness of financial institutions. The objectives of the bank can be categorized as follows:
Conduct the monetary policy
Ensure the stability of the financial system in the country
Work towards developing a fully efficient payment system mechanism
To become an organization that is committed to excellence
To improve the image of the bank in the eyes of the common people
The general control and administration of the bank is in the hands of a Court of Directors, which consists of the Governor and the Deputy Governors and at least five other members. His Majesty appoints the Governor and the Deputy Governors. The Cabinet appoints the rest of the members of the board.

Roles and Responsibilities of the Bank of Thailand

According to the Bank of Thailand (BOT) Act B.E.2485 as amended by B.E.2551.
1. Print and issue banknotes and other security documents
The BOT prints and issues banknotes and other security documents under the enforcement of the Currency Act and has sole rights to print and issue banknotes in the Kingdom.
2. Promote monetary stability and formulate monetary policies.
The BOT implements monetary policy as specified by the Monetary Policy Committee as follows : mobilizing the deposits, determining the interest rate for loans to financial institutions, trading foreign exchange and exchanging for the future cash flow, borrowing foreign exchange in order to maintain the monetary stability, borrowing

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