In France, Italian money is out of circulation! (5)
I believe the answer is:
loire
'in france' is the definition.
(I know that Loire is part of France)
'italian money is out of circulation' is the wordplay.
'italian money' becomes 'lire' (Italian currency o86o-2002).
'is out of' means one lot of letters goes inside another (some letters on the outside of others).
'circulation' becomes 'o' (I can't justify this - if you can you should believe this answer much more).
'lire' placed around 'o' is 'LOIRE'.
Can you help me to learn more?
(Other definitions for loire that I've seen before include "France's longest river" , "River flowing through Tours and Nantes" , "part of France" , "flower abroad" , "banker" .)