Market volatility manageable, says IMF chief

International Monetary Fund chief Christine Lagarde on Wednesday downplayed China's recent market volatility and said the Chinese economy is resilient and the slowdown in growth is under control.

Lagarde said, from a medium-term perspective, the benchmark Shanghai Composite Index is still more than 80 percent up from a year earlier despite the recent sharp declines.

In response to China's efforts to stabilize the market, the IMF chief said that it is the Chinese authorities' duty to prevent disorderly movements in the markets. "The fact that they (Chinese authorities) want to maintain a level of liquidity as well that is commensurate with an orderly process is also quite good."

She said that the market turmoil would not derail the IMF's discussion on whether to include the yuan in its special drawing rights basket of currencies.

"We are comforted by the determination (of Chinese authorities) to deliver on the reforms, which will be conducive, one day, when the time comes, once all the signals are checked positively, to the renminbi being included in the special drawing rights basket," she said.