May 5, 2017 / 7:21 AM / 3 months ago

Germany's Target 2 claims hit another record

2 Min Read

FRANKFURT, May 5 (Reuters) - Money continued to flow into Germany in April, Bundesbank data showed on Friday, pushing the country's net claims against the rest of the 19-member currency bloc to a new record high.

Germany's net claims in the European Central Bank's Target 2 payments system rose to 843.4 billion euros by the end of April from 829.8 billion euros a month earlier.

Money has been flowing out of the euro zone's periphery and into a handful of core countries in recent years with the ECB arguing that this is primarily due to its asset purchase programme as the bulk of investors selling their bonds maintain accounts in places like Germany.

Indeed, a recent study published by the ECB showed that roughly 90 percent of the extra cash injected by the bank to boost the euro zone's economy is piling up in just five countries: Germany, France, the Netherlands, Luxembourg and Finland.

Germany is among the first countries to publish monthly Target 2 data. (Reporting by Balazs Koranyi, editing by Andreas Framke.)

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