IMF official says it's "totally premature" to talk about a crisis in China

IMF official out this weekend with comments on the recent developments in China

Carlo Cottarelli, an executive director, said China's economic slowdown and a sharp fall in its stock market herald not a crisis but a "necessary" adjustment for the world's second biggest economy

"Monetary policies have been very expansive in recent years and an adjustment is necessary,

It's totally premature to speak of a crisis in China

China's real economy is slowing but it's perfectly natural that this should happen ... What happened in recent days is a shock on financial markets which is natural"

Cottarelli said the IMF would discuss in coming months with Chinese authorities their decision to weaken the currency.

China is eager for the yuan to join the IMF's Special Drawing Rights basket of currencies. But the fund is considering extending the current SDR basket by nine months until September 30, 2016.

Reuters carries more here