GLOBAL companies are prioritizing liquidity and cash flow management as geopolitical tensions, rising costs and shifting trade routes continue to disrupt supply chains, according to a report by Citi Institute and Citi Services.
The report, “The World Rewired: Shifts in Global Trade and Foreign Direct Investment,” said that 72 percent of the global companies surveyed identified releasing trapped liquidity as a top strategic priority for the next 12 months, up from 66 percent at the start of 2026.
It also found that 64 percent of respondents considered identifying liquidity tied up in supply chains as a key driver of working capital strategy, compared with 55 percent earlier in the year.
Citi attributed the heightened focus on liquidity to persistent supply chain pressures, with the war in the Middle East and elevated oil and refined product prices keeping its Global Supply Chain Pressure Index at its highest since 2021 to 2022.
“For several years the conversation was dominated by resilience through diversification,” said Adoniro Cestari, Citi Services global head of trade and working capital solutions.
“Companies diversified their supplier base and redesigned sourcing strategies to strengthen their operations. Now treasury teams are turning to a related question: where is our cash sitting, and how quickly can it be put to work?”
Despite the disruptions, global trade-related payment flows continued to expand, rising 40 percent year on year in the first half of 2026, with growth recorded across all major regions tracked by Citi.
Technology-related payment flows grew 50 percent globally as investment in artificial intelligence (AI) infrastructure reshaped capital flows. Asia and Latin America recorded increases of 60 percent and 58 percent, respectively.
The report also pointed to changes in trade routes as companies adjusted sourcing and export destinations. China's vehicle and parts exports to North America accounted for about 13 percent of shipments by mid-2026, down from roughly one-third previously.
Meanwhile, Africa's share nearly doubled from around 8 percent in 2022 to more than 15 percent.
Rising costs and financing expenses are also shaping corporate working capital decisions. About 68 percent of respondents cited increasing input costs as a key factor, while 59 percent pointed to elevated interest rates.
Tariffs were a major factor in supply chain relocation decisions for companies in Asia-Pacific, cited by 46 percent of respondents in the region, and Latin America, at 44 percent. In North America, only 2 percent cited tariffs as a driver.
Companies are also turning to digital tools to improve cash visibility and operational efficiency. The share of companies using AI in trade operations nearly tripled to 45 percent from 16 percent in 2024, while nearly half of respondents were evaluating distributed ledger technology and blockchain solutions.
“There's a tendency to read every shock as evidence that globalization is going into reverse,” Cestari said.
“The report tells a more nuanced story. Trade, investment and payment flows are still growing, just through different markets and corridors than they did a decade ago.”
