IMF chief says world's economy back from edge

The global economy has stepped back from the brink, and signs of stabilisation are emerging from the eurozone and the US, but high debt levels in developed markets and rising oil prices are key risks ahead, the IMF said yesterday.

"The global economy may be on a path to recovery, but there is not a great deal of room for manoeuvre," the IMF's managing director, Christine Lagarde, said in Beijing.

In a separate talk, Ms Lagarde said that China's yuan could become a reserve currency in the future, adding that it needed a roadmap for a more flexible exchange rate system.