Citigroup Says De-Dollarization Narrative Is a ‘Mirage’

Citigroup Inc. analysts have dismissed the idea that global investors are seeking to reduce their reliance on the dollar, describing the de-dollarization narrative as a “mirage” that’s not supported by economic data.

The greenback has tumbled nearly 9% this year, but US balance of payment statistics do not confirm notable selling of dollar assets, strategists led by Osamu Takashima wrote in a note to clients. And there’s no significant correlation between inbound foreign portfolio investment and the currency’s performance over the long run, they added.