0930 GMT - PBOC Gov. Pan's call for multi-polar FX reserves is timely, as investors rethink the costs of over-reliance on a single reserve currency, says Maybank Investment Banking Group's Erica Tay. Progress in the CNY internationalization has been halting, with capital controls being a key hurdle. Global investors would be more willing to hold yuan, and exporters more willing to accept yuan payments if they could freely move investments in and out of China, says Tay. They would also embrace the currency more if there is breadth and depth of yuan financial assets, including derivatives. China has made progress there, improving across-border transactions so overseas merchants now face far less friction. In the long term, Tay sees yuan use rising, driven by select regions like EM commodity exporters that tend to rely on China as a trading partner. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

June 23, 2025 05:30 ET (09:30 GMT)

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