China's central Bank announced that from March 17, the volatility of RMB trading price against the Dollar in the inter-bank spot foreign exchange market will be expand from 1% to 2%. From ANBOUND think tank scholar’s point of view, the exchange rate policy is introduced at the wrong timing. Under the increasing pressure of economic slowdown, the improvement of RMB exchange rate volatility is likely to increase the risk of depreciation, although the central bank is moving towards the correct direction in the long run but it is stepping into the wrong rhythm in the short run.