Her decision is based on her nomination to become head of the European Central Bank (ECB)
If the European Council approves her ECB nomination, she will become the central bank's first ever female leader, responsible for the euro and the monetary policy of the eurozone.
Known as the "rock star" of international finance, Ms Lagarde, 63, began her career as a lawyer before moving into politics. She served in various ministerial posts under Nicolas Sarközy before being elected as the first female boss of the IMF - replacing Dominique Strauss Khan.
From BBC news
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