Lagarde resigns as IMF Chief

Brussels: Christine Lagarde has resigned as the Managing Director of the International Monetary Fund (IMF).

The head of the global body announced that she would formally step down on September 12.

In a statement, Lagarde said, "I have met with the Executive Board and submitted my resignation from the fund with effect from September 12 2019."

Lagarde is in the running to become the next president of the European Central Bank (ECB). She was nominated for the role by the European Council on July 2.

If formally appointed, Lagarde would be the first woman to lead the ECB, which is responsible for monetary policy within the Eurozone. She would succeed the former Governor of the Bank of Italy Mario Draghi, who has led the ECB since 2011.

At the time of her nomination to lead the ECB, Lagarde formally relinquished her responsibilities as head of the global body, with David Lipton named Acting Managing Director.

"The relinquishment of my responsibilities as Managing Director announced previously will remain in effect until then," she added in her statement.
On her reasons for resigning, Largade said, "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, as it will expedite the selection process for my successor."

The global lender's Executive Board later announced that they had accepted her resignation, thanking Lagarde for "her innovative and visionary leadership."

"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 board stated.

Lipton will continue to serve as the global body's Acting Managing Director.