IMFs Lagarde says China should communicate better with financial markets

The IMF on Thursday opens formal nominations for the next term of managing director, with incumbent Christine Lagarde seen as the leading candidate despite possibly facing a trial in France.

International Monetary Fund (IMF), says it has opened selection process for its top job and will begin accepting nominations on Thursday. The savvy Frenchwoman, however, held back from confirming she wants the job.

The IMF has typically been run by a European official, while its sister organisation, the World Bank, by an American.

Speaking from the World Economic Forum in Davos, Finnish Finance Minister Alexander Stubb said that Ms Lagarde “definitely” has his country’s support for a second term.

IMF Managing Director Christine Lagarde’s term expires on July 5.

She had proven to be a “far-sighted and successful crisis manager in hard times”, the German finance ministry in Berlin said in a statement.

While she’s still the front-runner and analysts said the case is unlikely to derail her reappointment, the prospect of a politically charged trial in her home country may still complicate her future at the International Monetary Fund.

Accused of alleged negligence over the Tapie affair while she was serving as France’s finance minister, Lagarde has said she will appeal against the court’s decision.

Mixed signals from China, which is attempting to shift its economy away from exports and investment to a consumer-driven model, have deepened concerns about the outlook for world growth, she said. Find us on Facebook too!

Fang Xinghai, the vice-chairman of China’s securities regulator, said at the same panel that “in terms of communication, we should do a better job”. As it weakens, that will weigh on the global economy by hurting trade, among other things.