France's Christine Lagarde has officially been selected as the new head of the International Monetary Fund, becoming the first woman to lead the organization.

The IMF's 24-member Executive Board announced Lagarde's selection as IMF Managing Director on Tuesday, bringing an end to a selection process that began on May 20, 2011.

Lagarde, who has served as French Finance Minister since June 2007, will succeed Dominique Strauss-Kahn, who resigned in May amid allegations that he sexually assaulted a hotel maid.

"The IMF has served its 187 member countries well during the global economic and financial crisis, transforming itself in many positive ways," Lagarde said in a statement. "I will make it my overriding goal that our institution continues to serve its entire membership with the same focus and the same spirit."

She added, "As I have had the opportunity to say to the IMF Board during the selection process, the IMF must be relevant, responsive, effective, and legitimate, to achieve stronger and sustainable growth, macroeconomic stability, and a better future for all."

The decision to select Lagarde as the new head of the IMF was widely expected after U.S. Treasury Secretary Tim Geithner released a statement earlier in the day indicating that the U.S. supported her bid.

"Minister Lagarde's exceptional talent and broad experience will provide invaluable leadership for this indispensable institution at a critical time for the global economy," Geithner said.

He added, "We are encouraged by the broad support she has secured among the Fund's membership, including from the emerging economies."

U.S. support for Lagarde along with the backing of other counties such as Russia and China helped her to overcome a challenge from Mexican Central Bank chief Agustin Carstens.

While the Executive Board agreed that both Lagarde and Carstens were well qualified candidates, it said Lagarde was selected by consensus after all relevant information was considered.

Although the U.S. ultimately decided to support Lagarde, Geithner commended Carstens on his "strong and very credible candidacy."

Developing countries have been trying to secure more influence over the IMF, but Lagarde's assumption of the position of head of the organization continues the tradition of having a European in the post.

RTTNews