The International Monetary Fund says China's yuan is broadly in line with fundamentals and desirable policies.

The IMF says in a fresh report that China's external imbalance has decreased significantly since the financial crisis. The country's current account surplus to GDP ratio has been sliding since 2007.

However, due to weak import growth, the ratio was up slightly in 2015 from 2014. The report also said that as China's economy shifts toward consumption, the trade surplus is expected to narrow.

The IMF also said pressure on China's foreign exchange reserves will remain manageable because the volume of capital outflows is expected to be broadly steady.