Citibank does not agree with the idea of global investors de-dollarizing and calls it an "illusion".

Analysts at Citigroup do not agree with the idea that global investors are seeking to reduce their reliance on the US dollar, calling the de-dollarization narrative a "illusion" that is not supported by economic data. Despite the US dollar falling nearly 9% this year, US balance of international payments statistics do not show significant selling of US dollar assets, wrote strategists led by Osamu Takashima in a client report. They also stated that there is no significant correlation between foreign portfolio inflows and the performance of the US dollar in the long term. "We believe that the idea of de-dollarization is to find reasons for the weakening of the US dollar due to position adjustments and hedging ratio adjustments," the strategists wrote. "We believe that the risks of US dollar depreciation should be discussed separately from de-dollarization."