(Photo: Agencies)

WASHINGTON, July 26 (Xinhua) -- The International Monetary Fund (IMF) Executive Board said Friday that it has initiated the selection process for the next managing director, aiming to reach a decision in early October.

"The executive board announces today that it has adopted an open, merit-based, and transparent process for the selection of the next managing director, similar to the one used in recent rounds," the executive board said in a statement.

"Individuals may be nominated by a fund governor or executive director and as with past practice, we aim to reach a decision by consensus," it said, noting that nomination will start on July 29 and close on Sept. 6.

The announcement came 10 days after Christine Lagarde formally submitted her resignation from the IMF position, with effect from Sept. 12. Early this month, she was nominated for the presidency of the European Central Bank (ECB) as part of the European Union (EU) leaders' agreement on the future leadership of top EU institutions.

David Lipton, first deputy managing director of the IMF, has served as acting managing director of the multilateral lender following Lagarde's surprise nomination.

"Although the executive board may select a managing director by a majority of the votes cast, the objective of the executive board is to select the managing director by consensus with the objective of completing the selection process by October 4, 2019," the statement added.

The position of IMF chief has always been held by Europeans while the head of the World Bank has traditionally been American, an informal arrangement that has stayed in place for over seven decades. Emerging markets, however, might also propose candidates, with their growing share in the world economy.