Mexico backs Lagarde to stay on as IMF chief

Mexico will not nominate a candidate in the race to lead the International Monetary Fund, and supports incumbent Christine Lagarde's offer to continue in the role, a Mexican government source said on Thursday.

Mexican Central Bank Gov. Agustin Carstens failed in a bid to challenge Lagarde for the leadership of the fund in 2011. Carstens has said recently that he is happy at Mexico's central bank, and accepted a second 6-year term late last year.

"Mexico is not going to present a candidate and backs France's nomination," the source said. "The government recognizes his leadership and talent, as we support an important ally of Mexico's structural reforms."

The source said Finance Minister Luis Videgaray had met with Lagarde in Davos to express his support for her candidacy.