TheCable

Christine Lagarde has been re-elected managing director of the International Monetary Fund (IMF), and is set to lead the body for the next five years.

After her announcement by the executive board on Friday, Lagarde expressed appreciation for the trust reposed on her to lead again.

“I have been honoured to serve in the past five years, I greatly appreciate the continued trust and support of the fund’s executive board and our 188 member countries,” Lagarde said.

“We have, I think, served the membership well — whether we have provided surveillance, financial support, to those who were in difficulties, or technical assistance and capacity building.

“The global economy is undergoing a number of important transitions and we are focused on helping our membership navigate these successfully.”

Lagarde, who visited Nigeria two times in her first tenure at the IMF, has been at the centre of major economic decisions made on the global stage.

With falling commodity prices across the world, Lagarde’s IMF has been facing challenges in helping intensely-affected country walk through the crisis.

As the first female head of IMF in more than 60 years, Lagarde resonates with a vast portion of the global economy, re-positioning the ideals of the IMF with emerging markets like China, Brazil and Nigeria.

Under Lagarde’s leadership, the Chinese yuan was added as a reserve to the IMF’s basket of currencies, called the Special Drawing Rights (SDR).

Lagarde, as quoted by CNBC, said that during her new term, she aims to make IMF’s efforts as tailored and country-specific as possible, while striking a balance between strength and flexibility within the organization’s policies.

Though some IMF researchers are making a case for capital control, Lagarde believes that Nigeria’s restriction of foreign exchange flow is “not a good idea”.

Her new term will begin July 5.