The most common and most likely answer to this crossword clue is the 4 letter word LIRA
I've seen this crossword clue in The Times
L
I
R
A
More clues leading to the result LIRA
- Bachelor evicted from house in former Italian capital
- Bother about squeezing in end of tour? It was spent in Malta
- Old foreign money Marilyn's grabbing, on return
- In Turkey, one is a bit of a pervert, it’s said
- Money once bottled by Marilyn in recession
- Terrorist group carrying pounds in old money
- ‘Foreign Currency’ sign head of bank gets removed
- Old capital of Italy
- Yesteryear’s money, pounds given to battling republicans
- Letters from Sarvepalli Radhakrishnan with old currency
Buddy explains!

The straight part
We know that "former Italian capital" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case former italian capital = lira.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does LIRA mean?
LIRA noun- The former currency of Israel, superseded by the sheqel.
- The basic unit of currency in Turkey.
- The currency of Lebanon (also pound), Syria (also pound), Jordan (also dinar)
- The former currency of Italy, Malta, San Marino, Cyprus and the Vatican City, superseded by the euro
- A Ukrainian folk musical instrument similar to the hurdy-gurdy.
- Any of a set of fine ridges on the shells of some molluscs