MILAN, June 8 (Reuters) - The Bank of Italy's liabilities towards other central banks of the euro zone fell in May to 164 billion euros ($183 billion) from 177 billion euros a month earlier, data showed on Monday.
The Bank of Italy's position within the Target 2 system, which settles cross-border payments in the euro zone, is monitored because its rising can be a sign of financial stress. Seasonal factors can also affect it.
In December Italy's Target 2 position hit a one-year high of 209 billion euros to decline by 45 billion euro a month later. It widened again in March to 192 billion euros.
$1 = 0.8982 euros Reporting by Valentina Za; editing by Francesca Landini