Citi: Corporations holding onto cash as supply chain disruption becomes the norm

As tariffs and wars continue to stress global logistics flows, corporations are becoming more careful with their financial strategies and are increasingly seeking to improve cash flow and resilience by extracting the cash that is embedded in their supply chains, according to a study from Citigroup Inc. The study found that the conflict in the Middle East, as well as elevated oil and refined product prices, have kept Citi's Global Supply Chain Pressure Index at its highest sustained level since 2021-2022. Against that backdrop, corporate treasurers are increasingly focused on extracting the cash that is embedded in their supply chains, creating a liquidity advantage that actively strengthens resilience-building. Overall, corporates are placing greater emphasis on working capital, liquidity, and cash visibility while trade routes and sourcing relationships continue to change, Citi Institute said in the report, “The World Rewired: Shifts in Global Trade and Foreign Direct Investment.” The report draws on Citi's proprietary payments network data, spanning tens of thousands of corporate clients across every major region, together with Citi's own mid-year survey of more than 700 large corporates and 150 suppliers alongside economic analysis from Citi Research. Researchers found that 72% of global corporates identify “releasing trapped liquidity” as their top strategic priority for the next 12 months, up from 66% at the start of 2026. For 64% of respondents, discovering how much liquidity is trapped in their supply chains has become a key driver of working capital strategy, compared to 55% earlier in the year. Taken together, the findings suggest that the next stage of supply chain decision-making will be shaped as much by treasury priorities as operational ones, with companies strengthening cash flow and doubling down on resilience. "For several years the conversation was dominated by resilience through diversification," said Adoniro Cestari, Global Head of Trade and Working Capital Solutions, Citi Services. "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?"