MILAN Feb 7 The Bank of Italy's liabilities
towards other euro zone central banks rose to 364.7 billion
euros ($388.7 billion) in January, marking a new record high,
according to data published by the central bank on Tuesday.
In December the country's Target 2 deficit was 356.6 billion
euros, down from a previous record high of 358.6 billion euros
posted in November.
The Bank of Italy's position within the Target 2 system,
which settles cross-border payments in the euro zone, is
monitored because it rising can indicate financial stress.
The increase in Target2 deficit posted last year was mainly
driven by Italians investing more in foreign assets and domestic
banks raising less funds on international markets, the Bank of
Italy said last month.
($1 = 0.9383 euros)
(Reporting by Francesca Landini and Giulio Piovaccari; editing
by Agnieszka Flak)