I think commodity prices worldwide rise because of the riding on the pandemic pretext in the USA. Because the Petrodollar reserve currency is being created at the unprecedented amount in the last two years, high inflations caused by currency debasement will certainly happen, the whole world will suffer at varying degrees, the poor countries will get hit the most severely; rich ones will suffer less. China's economy will be dancing carefully along the changing world in this very challenging times! But the other thing, the cheap oil (easy to extract ones, the low hanging fruit) is gone already thus oil price must increase. .
Anyhow China just hiked its FX reserve ratio to weaken yuan yesterday.
Mainland China's financial institutions will need to hold 9% of their foreign exchange in reserve from December 15, the central bank said in a statement Thursday evening Beijing time (09 December 2021), a 2 percentage point increase. The FX RRR hike comes at a level that twice in the last 10 years has been associated with a significant regime shift in the yuan (devaluations).
