The Managing Director and Chairman of the Board of the International Monetary Fund (IMF) has resigned.
It comes ahead of a decision on her nomination to become head of the European Central Bank (ECB).
Ms Lagarde said she would leave the IMF on 12 September 2019.
“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,” she said.
“The executive board will now be taking the necessary steps to move forward with the process for selecting a new managing director.”
Christine Largade in a letter to the Members of the Board said her resignation takes effect from September 12, the likely date for her hearing before the Economic Commission of European Parliament.
“During the period of time until Septemeber 12, the relinquishment of my duties announced previously will stay in effect, and I will not speak, write nor make any representation in the name of, or on behalf of the IMF. I will offer the Acting Managing Director any help that he so requests for appropriate transition purposes,” she further stated in her letter.
On July 2, Madam Largade was nominated by the European Council to the position of President of the European Central Bank.
“I had agonised over this proposal during the previous 48 hours and eventually decided to accept,” she said.
Emotional Largade spoke about the good times she has had with the team at the IMF and the successes they chalked together noting “it was occasionally divided, but it was always civilised and respectful”.