The International Monetary Fund has now formally accepted the resignation of its managing director, Christine Lagarde, who has been appointed to head the European Central Bank.
Her resignation notice will expire in September, the board announced, amidst an introspective conference in Paris on 75 years of Bretton Woods Agreement and the future. The agreement by allied powers after World War 2 gave birth to IMF and the World Bank.
Her acting successor, David Lipton addressed the conference in Paris, organised by the Banque de France conference on the future of Bretton Woods.
The 1944 Bretton Woods agreement established a new global monetary system.
It replaced the gold standard with the U.S. dollar as the global currency. By so doing, it established America as the dominant power in the world economy. After the agreement was signed, America was the only country with the ability to print dollars.
The agreement created the World Bank and the International Monetary Fund.
These U.S.-backed organisations would monitor the new system.
Last month the board had appointed Lipton to hold forte while Lagarde went to Europe for confirmation of her appointment. Lipton will now continue to act.
Christine Madeleine Odette Lagarde, 63 years old has been at the helms of IMF since 2011. She is a lawyer, politician and economist. She won an automatic second term just three years ago.
Read the IMF board statement.
“Today the IMF Executive Board accepted Managing Director Christine Lagarde’s resignation from the Fund with effect from September 12, 2019.
“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 Fund has excelled in serving its entire membership over the course of her tenure with cutting-edge policy advice supported by ground-breaking analytical work on a range of macro-critical issues. Her stewardship has been exceptional, and we are grateful 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 Executive Board has the utmost confidence in Mr. David Lipton, who remains Acting Managing Director of the Fund in the interim period.”