The Yuan

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.

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.