MILAN, Aug 7 (Reuters) - The Bank of Italy’s liabilities towards other euro zone central banks fell further in July, reaching a new 14-month low and returning where they stood before the current populist government was elected, data showed on Friday.
Italy’s so-called Target 2 debt fell to 435.89 billion euros ($487.46 billion), the lowest level since April 2018, compared with 447.58 billion euros in June, the Bank of Italy said.
A country’s Target 2 position is monitored as a sign of financial stress and imbalances within the euro zone. Target 2 debt could rise, for example, due to capital outflows.
Italy’s Target 2 debt hit an all-time record in August last year, reaching 492.53 billion euros ($1 = 0.8942 euros) (Writing by Alessia Pé, editing by Valentina Za)