Another day, another reform measure for the renminbi. This one sounds quite bold: ending a six-year ban, SAFE has decreed that small Chinese banks will now be permitted to hold overnight long positions in the renminbi. And that means these banks are now also able to hold short positions in foreign currencies.

SAFE’s announcement doesn’t explain how the rule will apply to the big market players, detailing only what small banks can do, which is take suitably small positions. But it still sends a signal that the authorities are ready to allow even unsophisticated local institutions to assume greater currency risks.

It might seem a bit wonky to do this just when officials have also indicated that they may be putting on hold the recent appreciation of the renminbi against the dollar.