Washington, Jul 3 (IANS): David Lipton, first Deputy Managing Director of the International Monetary Fund (IMF), will serve as acting MD following the nomination of Christine Lagarde to the presidency of the European Central Bank (ECB), the executive board of the IMF has said.

"We, the Executive Board of the IMF, take note of the nomination of IMF Managing Director Christine Lagarde as President of the European Central Bank," the IMF board said in a statement on Tuesday.

"We accept Lagarde's decision to relinquish her IMF responsibilities temporarily during the nomination period. We have full confidence in First Deputy Managing Director David Lipton as Acting Managing Director of the IMF," the statement said, declining to offer any details regarding the search for a new IMF MD.

Lagarde's nomination to be the ECB chief is part of the European Union (EU) leaders' agreement on the future leadership of EU institutions, but it comes as a surprise to many.

Lagarde, a French national, would be the first woman to lead the ECB. She is set to replace ECB President Mario Draghi, whose eight-year term ends on October 31.

On July 5, 2011, Lagarde became the 11th MD of the IMF, and the first woman to hold this position. She was elected to a second five-year term as the IMF MD, which started on July 5, 2016. Prior to joining the IMF, Lagarde served as France's Finance Minister from 2007 to 2011.