Citi report Corporates prioritise liquidity as supply chains mature

A new Citi report titled "The World Rewired: Shifts in Global Trade and Foreign Direct Investment" reveals that corporations are prioritizing liquidity and cash visibility in their supply chains as they adjust to changing trade routes and sourcing relationships. The Middle East conflict, high oil and refined product prices, and a record rise in global trade have driven this shift.

Corporate treasurers are now focusing on extracting embedded cash from supply chains to build resilience. A significant 72% of global corporations have identified releasing trapped liquidity as their top strategic priority for the next year, up from 66% at the start of 2026.

Discovering trapped liquidity has become a key driver of working capital strategy, with 64% of respondents considering it a key factor, up from 55% earlier in the year. Citi's data shows global trade continues to grow despite disruption, with overall payment flows rising 40% year-over-year in the first half of 2026. Technology payments led this growth, with global AI infrastructure buildout impacting capital flows.

Trade routes are shifting alongside these payment flows, with China's vehicle and parts exports now accounting for only 13% of shipments to North America, down from 33% previously. Africa has become a rapid-growing destination for shipments from China, accounting for nearly 15% of total imports, up from 8% in 2022.

Cost pressures, including rising input costs and elevated interest rates, are influencing corporations' working capital decisions. Nearly 70% of companies cite increasing input costs as a key factor in their working capital strategy, while 59% attribute elevated interest rates to their attitudes.

Interest in digital tools to support working capital performance is also increasing, with nearly half of corporations evaluating distributed ledger technology and blockchain solutions, and AI usage in trade operations nearly tripling from 16% in 2024 to 45% today. While some may argue globalization is reversing, the report suggests a more nuanced reality. Companies are adapting to new trade patterns and seeking efficiency amidst uncertainty while leveraging their liquidity.