Monday, August 8, 2011
The nickname for the Chinese Currency is Yuan. It's official name is Renminbi. The year before the Chinese Communists took control of the government of China, they opened the Bank of China and issued their new currency.
This chart assumes that the Bank of China opened at 9:00 am and immediately used their currency. The Reminibi is difficult to check because the bank makes decisions whether or not to allow the value to float at preannounced meetings. During the past few years the Yuan was allowed to float when Pluto made a conjunction to the Mars/Jupiter at 3 degrees Capricorn.
A quick look at this chart and immediately you see transiting Saturn moving to a conjunction with Neptune. I like to attribute the rulership of paper currency as well as interest rates to Neptune. When Saturn passed over Neptune in December 2010 and March 2011 the Bank of China raised interest rates. The bank says it will raise interest rates again during August. Since December the Yuan has gradually lost value against world currencies. The Yuan has moved from USC/CNY 6.67 in December 2010 to USD/CNY 6.44 August 7, 2011.
November 24, 2011 there will be a solar eclipse exactly on the Yuan's Mercury and very close to the Yuan's Sun. News from the Chinese bank will be difficult to translate into Western banking terms and the Western currencies will find Chinese policies difficult to understand.
Until August 31 expect Chinese interest rates to go up and the value of the Yuan to fluctuate rapidly against world currencies. Starting September 1, 2011 expect the Yuan to increase gradually in value as the Chinese bank brings home Yuan in a play to become recognized as a reserve currency. However at the end of October a string of Jupiter transits will force the Chinese bank will return to printing money to overcome pressures from the speculators.
Interesting China invented paper currency and has a checkered history of devaluing the paper with the printing press.