Lagarde resigns as International Monetary Fund chief, cites more clarity on European Central Bank post

Lagarde resigns as IMF chief cites more clarity on ECB post

Lagarde resigns as IMF chief cites more clarity on ECB post

Lagarde's resignation, first reported by Reuters, came two weeks after her nomination on July 2 for the ECB's top job.

Lagarde has already given up her day-to-day duties as head of the IMF, and the global lending agency has named a top deputy, David Lipton, as acting managing director. "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 Board said.

She would be taking over as head of European Central Bank (ECB). David Lipton remains our Acting Managing Director.

Lagarde said in a statement her resignation was effective September 12, opening the way for the International Monetary Fund to choose its next leader.

A statement from the executive board issued on Tuesday said, "Today the IMF executive board accepted Managing Director, Christine Lagarde's resignation from the fund with effect from September 12, 2019".

Lagarde's decision to resign comes on the eve of a meeting of the G7 finance ministers in Chantilly, France.

Following the adoption, Lagarde's nomination is being discussed by the ECB Governing Council and the European Parliament, as the final appointment by European Council will be made in October.

On the sidelines of the G7 meeting, Bank of England Governor Mark Carney, considered a leading candidate to replace Lagarde, is slated to meet with U.S. Treasury Secretary Steven Mnuchin, who wields strong influence over the IMF's leadership.

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

In a statement sent to newsrooms, Lagarde explained she made the decision to step down in the best interest of the Washington-based Fund owing to her nomination to take over from European Central Bank's Mario Draghi as the financial institution's new president.

Her second five-year term as head of the International Monetary Fund was not due to end until July 2021.

"Her legacy of achievements has made a lasting imprint on the Fund".