Things are really heating up between the PBOC (People’s Bank of China) and currency traders.
The HIBOR (the offered rate at which deposits in CNH are being quoted to prime banks in the Hong Kong interbank market) just soared to the second highest level of 2016. The biggest spike occurred in January 2016.
A sudden jump in the HIBOR hurts. One, by increasing the cost to borrow the currency and sell it. Second, by encouraging lenders that want to avoid paying the higher rates to buy the yuan they need in the spot market instead, bolstering the exchange rate.
In terms of commodities, nothing has been the same the The Great Recession. There was a rebound in 201o-2011, but it has been all downhill since then.
Indeed, it is Big Trouble in Big China.