The International Monetary Fund says it feels China's economy remains stable, suggesting any talks of a "crisis" in China is premature.

Global stock markets were hammered on Friday on concerns about China, driving Wall Street to its steepest one-day drop in nearly 4-years, shedding over 3-percent.

The Dow's dramatic slide followed a report on Friday showing manufacturing has shrunk in the first three weeks of August, despite the value of the renminbi coming down against the US dollar.

A lower renminbi makes it more cost-effective for manufacturers.

The IMF says it plans to discuss the downturn in the valuation of the renminbi with Chinese authorities in the coming months.

Chinese authorities have been pressing to have the RMB included in the IMF's Special Drawing Rights basket of currencies.

However, it’s expected the IMF won't be adding the Chinese currency into the basket until September of next year at the earliest.