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IMF chief names deputies

CHRISTINE Lagarde, the new head of the International Monetary Fund, has named a US official as her chief deputy and, in a move that reflects China's rising influence, added a Chinese official to the ranks of her senior advisers.

CHRISTINE Lagarde, the new head of the International Monetary Fund, has named a US official as her chief deputy and, in a move that reflects China's rising influence, added a Chinese official to the ranks of her senior advisers.

David Lipton, a White House economic adviser, will become the fund's senior deputy managing director in September, after the previously announced retirement of John Lipsky.

The US, which owns a controlling share of the fund, maintained its historic insistence that an American should fill the post, just as a European has always headed it.

But Ms Lagarde also bowed to the future by naming a Chinese economist, Zhu Min, to a newly created position as the fourth deputy managing director.

Mr Zhu's elevation follows a campaign promise by Ms Lagarde to increase the role of China and other emerging economies in managing the fund. The other two deputy directors, who will remain in place, come from Egypt and Japan.

"These appointments are part of a grand bargain that allowed Europe to retain its hold on the top job," said Eswar Prasad, a professor of trade policy at Cornell University who worked at the fund for 17 years. "This may be one of the few instances where the three largest economic powers China, Europe and the US found their short-term interests closely aligned."


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