For the 5th day in a row, Onshore Yuan has tumbled against the USDollar. Absent the violent devaluation in August, this is the largest drop since March 2014, leaving the Chinese currency at its weakest level against the USD since August 2011. It appears that after showing some signs of ‘stability’ to appease The IMF’s political decision, and following the weak trade data this week, China has decided to escalate the currency wars, perhaps in anticipation of (or in an attempt to stall) any market turbulence when The Fed hikes rates next week and withdraws up to $800bn in liquidity from global markets.

Onshore Yuan is now at its weakest since August 2011…

As it seems, with the blessing of The IMF, China has begun its competitive devaluation efforts…slowly and under the cover of darkness from America’s mainstream media…

Put simply, something is going on as the world’s money markets prepare for what lies ahead next week and the asset classes with the most risk (see CCC US Corps, EM FX, Oil) are the first to suffer before the effects of shortened collateral chains ripple up into mom-and-pop’s 401k.

Charts: Bloomberg