Chinese Currency: Renminbi alias Yuan

The headline is that the Chinese Premier Lu's visit to the USA signals an easing in the valuation of Chinese currency to the US Dollar. Reporters expect that China banking officials will allow a modest appreciation in the value of the Renminbi alias Yuan. Many economists believe that it is 20% over valued against all other currencies.

Renminbi Floats

July 21, 2005 the peg of the Chinese Renminbi was lifted and a managed float was put into place. At that point in time transiting Neptune was opposed the Renminbi's Pluto and Jupiter was conjunct its Neptune. In Financial astrology Neptune represents interest rates which is basically the meaning of a float.

Example of the Float

July 21, 2005 the Chinese Central Bank lifted its peg to foreign currencies and allowed a managed float using a basket of currencies. Until July 21,2005 it would cost 8.2 Renminbi to buy one US dollar. In July 2007 the price was 7.6 and today it takes 6.8 Renminbi to buy one US dollar.

Chinese Invented Paper Money

Chinese currency has a long and very interesting history. They invented copper coins with a hole in the center. Folks strung the coins together and traded the strings of coins for goods. Eventually the coin strings weighed more than their owner. Inconvenient!

Find a need and fill it

The Chinese invented paper money known as Mulberry currency since the paper was from the inner bark of a Mulberry tree. Originally the paper money could be traded for copper coins, silver or gold but like all great currencies it soon became a fiat currency as rulers ran their printing presses faster and faster.

Today's Yuan

A year before the final take over of the China's government The People's Party established a bank to issue a new currency. It was a brilliant move and the date appears to have been set by someone not very conversant in Chinese Astrology since it is the year of the earth rat.

The chart above tests well with events in the history of this version of their currency. Therefore we might expect that transiting Pluto conjunct its Jupiter/Mars and transiting Saturn opposed Uranus square its natal Uranus will ignite some very deliberate action on the part of the Chinese Central Bank to bring the valuation of their currency into balance with the dollar and other world currencies. Their controlled float will be very measured since Saturn seems to be in charge of the pace. Saturn will make a conjunction to the Renminbi Neptune March 25, 2011 thus ending the float.