She also proposed the appointment of David Lipton of the United States as first deputy managing director to succeed John Lipsky, whose term ends in August, the fund announced. Lipsky will stay on as special adviser to Lagarde until November.
Zhu, former deputy governor of China's central bank, is currently special adviser to the managing director. His promotion to the newly created fourth deputy director position is in recognition of China's growing global economic clout, and would give China greater voice at the global financial organization.
Zhu "brings a wealth of experience in government, international policy making and financial markets, strong managerial and communication skills as well as an institutional understanding of the fund, and I look forward to his counsel," Lagarde said, adding in his new job, he will help to strengthen "the fund's understanding of Asia and emerging markets more generally."
Zhu, who earlier taught economics at Johns Hopkins University, joined IMF last year. He also worked at the World Bank for six years.
Lagarde said Lipton has expertise in public sector policy making, private sector experience, and a proven track record in economic crisis management.
Currently, Lipton, who has a doctorate from Harvard, is special assistant to the president and senior director for international economic affairs at the U.S. National Economic Council and U.S. National Security Council at the White House. He has also held senior positions at the U.S. Treasury Department.
The IMF's other two deputy managing directors are Naoyuki Shinohara of Japan and Nemat Shafik, who has Egyptian, U.K. and U.S. ties.
'SNL': 'Anchorman 2' cast, One Direction sing 'Afternoon Delight' [VIDEO]
Reindeer recovered after escaping from Santa during lighting ceremony