Lagarde resigns as IMF boss, paving way for European Central Bank presidency

IMF Managing Director Christine Lagarde has resigned with effect from September 12, and the selection process for her successor will start promptly, the Executive Board said in a statement on Tuesday.

Lagarde is poised to take up the European Central Bank presidency, becoming the central bank’s first-ever female leader

She will succeed Mario Draghi, who has been at the helm since June 2011.

“Today the IMF Executive Board accepted Managing Director Christine Lagarde’s resignation from the Fund with effect from September 12, 2019,” the statement by the IMF communications department said.

“We would like to express our greatest appreciation for all that Managing Director Lagarde has done for the institution. Her legacy of achievements has made a lasting imprint on the Fund. Under her guidance, the Fund successfully helped its members navigate a complex and unprecedented set of challenges, including the impact of the global financial crisis and its aftershocks.”

The former French Cabinet minister has been head of the IMF since 2011 and her term had been scheduled to run through 2021.

“With this decision by Managing Director Lagarde, the IMF Executive Board will initiate promptly the process of selecting the next Managing Director and will communicate in a timely fashion. The Executive Board has the utmost confidence in Mr. David Lipton, who remains Acting Managing Director of the Fund in the interim period.”

Lagarde was announced as the leading candidate for the ECB job two weeks ago.

What is ECB?

The European Central Bank is the central bank of the 19 European Union countries that have adopted the euro. According to its website, its main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

It defines and implements monetary policy for the euro area and carries out a number of other tasks, including banking supervision.