Fiscal policy must continue to be directed as a shock absorber against the impact of soaring global energy and food prices on domestic inflation by providing subsidies and social assistance programs, while simultaneously lowering the deficit to below 3% of GDP, as stipulated in the 2023 State Budget (APBN).
However, a revaluation of the RMB would have limited consequences for overall U.S. imports as well as for U.S. exports that compete with Chinese products in third markets.