China's “Black Monday” wiped out hundreds of billions of dollars across markets on Monday. The crisis has sent shares in the U.S., Asia and Europe tumbling. Yet, amidst everything, the International Monetary Fund claimed that it is still too "premature" to conclude anything about the decline.

The organisation said that the economic slowdown and sharp fall of stocks should not be considered entirely as a crisis rather a "necessary" adjustment for the second biggest economy in the world. On August 21, new evidence on easing China growth took a toll on global stocks, giving Wall Street its steepest one-day drop for the last four years. IMF executive director, Carlo Cottarelli, explained (via Reuters): "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," he added. He also said that while China’s economy is slowing, it is perfectly natural for such to happen.

Nonetheless, such reassurance did not stop China from sending the world market into a spin as Monday became one of the worst trading days in many years. In fact, investors are also wondering whether last Monday's events are signs of a crisis looming that started around eight years ago. China remains a major contributor to world markets and economic growth. It has also seen low global inflation for the past twenty years.

Mohamed El-Erian, former CEO of California-based global investment firm PIMCO, shared similar views with IMF. According to the executive (via The Guardian): "I’m not a buyer that this is the crisis of all crises."

"Yes, this is a very unpleasant repricing, very unpleasant. And it’s going to go quite deep, but it’s not going to derail the economy in a major way.” Despite the sizable losses posted on Monday, reports also pointed out that these are not the worst to happen in history.

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