The mid-March widening of the daily renminbi-dollar trading bands to plus or minus 2% (from the earlier 1% band) is an important step in relaxing control over the so-called managed float. That, coupled with the 3% depreciation in the past few months, should send a strong signal to speculators that one-way renminbi bets are hazardous – a signal that could help dampen inflows of hot money, which have complicated liquidity management and fueled asset-market volatility in China.