Lagarde hopeful on IMF leadership bid after China talks

French Finance Minister Christine Lagarde, the frontrunner to lead the International Monetary Fund (IMF), said on Thursday she is "very positive" after a marathon day of talks in Beijing. At the meeting she backed China's right to fill a senior position at the organisation.

Reuters

"I have a very positive feeling following these talks, but it's up to them to convey their decision. It's not up to me." she told reporters.

Lagarde has met Indian leaders and has already visited Brazil as part of her campaign to be the first-ever female IMF boss.

The emerging economies are challenging the long-standing practice of a European always heading the IMF and an American the World Bank and so far their leaders have all been non-committal when asked whether they back Lagarde for the post.

Lagarde has pledged to reform the IMF if she wins the job, and would probably appoint key staff from emerging-economy countries.

One issue which might undermine Christine Lagarde's chances is the so-called Tapie affair. A Paris court decides Friday on whether to launch an inquiry on Friday, the same day as the IMF candidates' list closes. 

Christine Lagarde said on Thursday that the appreciation of China's yuan currency against the dollar was a "positive movement" and should continue.

Beijing has allowed the unit to strengthen more than five per cent against the dollar since pledging a year ago to let it trade more freely.

Critics claim the currency is grossly undervalued, making Chinese exports artificially cheap.

The French finance minister told reporters that the IMF would help China achieve its stated goal of making the yuan more widely used oversees, but noted that the process should be gradual.