Biding His Time on a Possible IMF Bid

The deadline for submitting official bids for the post of IMF chief is June 10; Stanley Fischer still unsure about whether will tender candidacy.

Bank of Israel Governor Stanley Fischer will test the waters before deciding whether to become a candidate to head the International Monetary Fund, a source familiar with the situation said yesterday.

"He will be talking to decision-makers throughout the world the next two weeks and then make a decision," the source told Reuters. "If there will be more and more voices and more and more support from different countries, he would consider it."

fischer - Haaretz - May 30 2011

The deadline for submitting official bids for the post is June 10.

Zambian-born Fischer, 67, is a former deputy managing director of the IMF. He has been widely credited with helping Israel's economy weather the global financial crisis by starting to lower Israeli interest rates sharply in 2008. He has since raised rates 10 times to contain inflation and prevent an overheating economy set to grow another 4.5 percent in 2011.

Fischer has declined to say whether he has been approached about the job vacated by Frenchman Dominique Strauss-Kahn, who resigned after his arrest on May 14 on charges of attempting to rape a New York hotel maid.

"It's one of the best jobs in the international system but I have a terrific job at the moment," Fischer said in an interview with Reuters Insider TV last Wednesday, referring to his post as head of Israel's central bank.

The source said Fischer was "keeping his options open" and it was too early to tell whether he would submit his candidacy.

"There are two weeks to go and anything can happen in those two weeks," the source said.

French Finance Minister Christine Lagarde, who officially joined the race for the top job in global finance last week, is the favorite, with backing from Europe. The only other declared candidate is Mexican Central Bank Governor Agustin Carstens.

A May 19 Reuters poll showed that 21 of some 60 economists believed that Fischer was "best suited" to run the IMF compared with 10 for Lagarde.

The United States, with 17 percent of the voting, still has not publicly backed a candidate, although U.S. Secretary of State Hillary Clinton said last Thursday she "unofficially" welcomed highly qualified women to lead international agencies.

Fischer, who holds Israeli citizenship, could run into heavy opposition from Arab countries.