Christine Lagarde will lead the IMF

Jun 28th 2011, 17:54 by R.A. |WASHINGTON

THE International Monetary Fund has announced its selection of Christine Lagarde, currently the French finance minister, as its new managing director. Ms Lagarde bested the head of Mexico's central bank, Agustín Carstens, in the contest to lead the IMF. Her victory was assured when she earned the backing of America and China early this week. Ms Lagarde's term will begin on July 5.

No easy task awaits her. The IMF has been intimately involved in the management of the European sovereign debt crisis (as has Ms Lagarde, in her ministerial position). The new IMF leader must decide how best to deploy its own resources while negotiating with Europe's divided leadership. As a European herself, Ms Lagarde will face intense scrutiny; she will need to go out of her way to demonstrate independence. But many in Europe will no doubt feel relief at the continued presence of one of their own at the IMF helm.