Lagarde resigns as IMF chief

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(Washington) – International Monetary Fund chief Christine Lagarde announced she had submitted her resignation from the global lender.

She said she had more clarity about her nomination to be the next head of the European Central Bank, ECB, Reuters reported on Tuesday.

Lagarde said in a statement her resignation was effective 12th September, opening the way for the IMF to launch the search for her successor.

“With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund,” said her statement.

She said her resignation would expedite the selection for the next head of the IMF.

Lagarde’s resignation comes two weeks after her nomination on 2nd July for the ECB’s top job. While a vote from the European Parliament is needed, its outcome is not binding, and Lagarde’s appointment will be finalised by EU leaders at a regular summit on 17th and 18th October.

Lagarde’s decision to resign comes on the eve of a meeting of the Group of Seven finance ministers in Chantilly, France. U.S. Treasury Secretary Steven Mnuchin is slated to meet with Bank of England Governor Mark Carney – one of the leading candidates to replace Lagarde – on Wednesday evening on the sidelines of the meeting. White House economic adviser Larry Kudlow last week declined to comment when asked about Carney as a possible replacement for Lagarde.

Other names being floated include Bank of Finland Governor Olli Rehn, as well as Germany’s Bundesbank President Jens Weidmann, and ECB executive board member Benoit Coeure.