Chinese Producer Prices have now fallen YoY for 45 consecutive months and November's 5.9% YoY drop is the largest since the crisis in 2009. Following weak trade data overnight (and with The IMF having blessed any and all currency movements), it appears Chinese authorities have decided to do something about and continue the slowest, quietest, stealthiest currency war in the world. With today's Yuan fix, PBOC has weakened the Yuan back below the August devaluation lows, back to its weakest against the USD since August 2011. Judging by Offshore Yuan, there is a lot more weakening to come.

PPI dropped the most since 2009...

So China 'devalued' the Yuan a little more... to August 2011 lows...

But judging by Offshore Yuan weakness, there's more 'devaluation' to come...

And all with the new blessing of The IMF...

Because if Japan can, then China can too.

Charts: bloomberg