"The development of China has been pressured by US President Donald Trump`s trade offensive. We are concerned about China`s reaction to maintain its economic stability," Finance Minister Sri Mulyani said here on Friday.
In the 1997-1998 Asian Financial Crisis, China maintained the stability of its currency, the RMB (renminbi), in the face of plummeting currency devaluations and the precipitous asset price deflation elsewhere in the region and beyond.
It made the renminbi relatively more expensive than the depreciated regional currency exchange rate. The move was intended to create economic stability.
When China faced the global financial crisis in 2008, the country issued a policy to make the renminbi stable.
"It shows that China has contributed to global stability. In the last 15 years, the global growth locomotive is China," she said.
In the context of trade war, China is experiencing disruption as the country is being attacked from the trade side.
To deal with it, China will certainly introduce a lot of policy responses.
The minister expected the IMF-World Bank Annual Meeting to bring together finance ministers from participating countries to discuss the US-China trade war.
With regard to the trade war, Indonesia needs to pay attention to the four economic pillars that sustain economic growth and stability, namely monetary, fiscal, economic activities, and balance payments.
Reporting by Calvin Basuki
Editing by Aziz Kurmala, Suharto
Reporter: Antara
Editor: Suharto
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