Corporate treasurers are pivoting from purely operational resilience to aggressive liquidity management as global trade disruptions become a permanent fixture of the macroeconomic landscape. According to a new report from Citi Institute and Citi’s Services business, titled "The World Rewired: Shifts in Global Trade and Foreign Direct Investment," companies are increasingly prioritizing the release of trapped capital to fortify their financial positions. This strategic shift comes as global supply chain pressures remain at their highest sustained levels since the 2021-2022 period, driven by Middle East conflicts and volatile energy prices. As sourcing relationships and trade routes undergo significant reorientation, the ability to extract cash from embedded supply chain cycles is emerging as a critical competitive advantage for global enterprises.
Liquidity Prioritization Amidst Sustained Supply Chain Pressure
The Citi Institute report highlights a decisive move toward working capital optimization as a response to structural economic challenges. Data shows that 72% of global corporates now identify releasing trapped liquidity as a top strategic priority for the next 12 months, an increase from 66% recorded at the start of 2026. Furthermore, 64% of respondents indicated that discovering the volume of liquidity trapped within their supply chains has become a primary driver of their working capital strategy, up from 55% earlier in the year. This trend suggests that treasury teams are moving beyond the previous era of "resilience through diversification" to focus on the velocity and availability of cash.
This heightened focus on liquidity is being shaped by persistent cost pressures. The report finds that 68% of corporates cite increasing input costs as a key factor in working capital decisions, while 59% point to elevated interest rates as a significant influence. These figures suggest that companies are treating high costs as structural realities rather than temporary cyclical fluctuations. To manage these complexities, firms are accelerating the adoption of advanced technologies; specifically, the use of Artificial Intelligence in trade operations has nearly tripled, rising from 16% in 2024 to 45% today. Additionally, nearly half of all surveyed corporates are currently evaluating Distributed Ledger Technology (DLT) and blockchain solutions to support working capital performance.
Shifting Trade Corridors and Technology-Driven Capital Flows
While geopolitical tensions often trigger narratives of deglobalization, Citi’s proprietary payment and receivable flows data indicates that global trade is actually expanding, albeit through new corridors. Overall payment flows rose 40% year-on-year in the first half of 2026, with growth observed across every major region tracked by the bank. A significant driver of this expansion is the global AI infrastructure buildout, which propelled technology-related payments to a 50% year-on-year increase. Within this sector, Asia and Latin America saw flow increases of 60% and 58%, respectively, while cross-border flows from Taiwan to Singapore surged by 90%.
These shifting flows are accompanied by a visible reorientation of physical trade routes. In the automotive sector, China's vehicle and parts exports have seen North America's share of shipments drop from roughly one-third to approximately 13% by mid-2026. Conversely, Africa has emerged as a high-growth destination, with its share of these exports nearly doubling from 8% in 2022 to over 15% today. Agricultural patterns are also shifting, with Brazil and Argentina helping Latin America secure dominance as China's primary agricultural suppliers, capturing between one-third and nearly half of total import shares in recent quarters. This geographic realignment underscores a more fragmented but active global trade environment.
Key Takeaways
- 72% of global corporates now prioritize releasing trapped liquidity as a top strategic goal for the upcoming 12 months.
- AI adoption in trade operations has increased significantly, rising from 16% in 2024 to 45% in 2026.
- Technology-related payment flows grew 50% year-on-year, driven largely by AI infrastructure investments and significant growth in Asian and Latin American corridors.
FinanceInsyte's Take
In our view, the Citi report signals a fundamental maturation of supply chain management, where the "resilience" mandate is being subsumed by a "liquidity" mandate. For years, the corporate playbook focused on diversifying suppliers to mitigate risk; however, the current environment of high interest rates and volatile input costs has made the cost of "idle" capital untenable. We believe this marks a transition from supply chain management as a logistics function to supply chain management as a core treasury function. The rapid tripling of AI adoption in trade operations suggests that firms are no longer just looking for more suppliers, but for better data to unlock the cash currently locked in transit and inventory. As trade routes migrate toward emerging markets in Africa and Latin America, the ability to maintain visibility and liquidity across these new, complex corridors will likely separate the market leaders from those caught in cash-flow volatility.
Questions & Answers
How are rising interest rates influencing corporate working capital strategies?
Elevated interest rates are a primary driver for 59% of surveyed corporates, influencing how they manage working capital. This has led to a strategic pivot where 72% of companies are prioritizing the release of trapped liquidity to ensure cash is available and put to work more effectively.
What role is technology playing in the evolution of global trade operations?
Technology is becoming central to managing trade complexity. AI adoption in trade operations has nearly tripled to 45% since 2024, and nearly half of all corporates are evaluating Distributed Ledger Technology (DLT) and blockchain to enhance working capital performance and visibility.
How are global trade routes changing in response to new economic realities?
Trade routes are reorienting toward new regions. For example, China's vehicle exports are seeing a reduced share in North America (down to 13%) while Africa's share has grown to over 15%. Similarly, Latin America has become a dominant supplier to China in the agricultural sector.
Is global trade shrinking due to recent geopolitical disruptions?
Not necessarily. While disruptions are high, Citi's data shows global trade is growing, with payment flows rising 40% year-on-year in the first half of 2026. The growth is simply moving through different markets and corridors, particularly in the technology and AI infrastructure sectors.
Source: Businesswire
