0814 GMT - Chinese central bank governor Pan Gongsheng made a pitch to give the yuan a bigger role on the global stage, but much will depend on progress in various parts of the economy. The PBOC announced eight financial policies to further open up China's financial system and promote yuan internationalization. Ultimately, a wider use of the currency rests on a robust economy and further progress in capital-account convertibility, Morgan Stanley economists say. For China to expand its monetary influence, it needs a dynamic economy and regulatory predictability, they write. To restore global confidence on growth, they reckon Beijing needs to overcome deflation, deploying a greater supply of central government bonds to fund rebalancing--and reducing debt-fueled investment elsewhere--and incentivize yuan use. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

June 18, 2025 04:14 ET (08:14 GMT)

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