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IMF: The world will learn from China's reform

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The Managing Director of the International Monetary Fund has said the world will learn from China's balancing act between economic transformation and global integration. Christine Lagarde was speaking at the China Development Forum. China's central bank chief Zhou Xiaochuan is also there. He explained the reasons behind the recent outflows of foreign exchange.

"The world will be watching very closely to learn from China as it deftly manages the delicate balance between economic transformation and deeper global integration in a country the size of which, and in the economy of which at that rhythm of development and pace of reforms, has never ever happened in the past," Lagarde said.

"The inflow of China's forex reserves was rapid, and therefore it's not a surpise that recent outflow is also a bit rapid. As the markets regain reasonable assessment of China's economy, reform, and currency exchange rate, this situation will change. And data is showing a slowdown in capital outflow," Zhou said.

 

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