De-Dollarization Is an Illusion, Says Citigroup () program details. Reviews, Scam or Paying

Citigroup analysts say that de-dollarization is a “mirage” that is not supported by economic data. While it’s true that developing countries are ending US dollar dependency, the narrative barely cuts the prospects of the greenback. There is more than what meets the eye, and the USD remains dominant in the global sector.

The talk of the US dollar declining comes after the DXY index slipped more than 10% year-to-date. The narrative was pushed by strategists from developing countries that de-dollarization led to the weakening of the US dollar. However, the US balance of payment statistics do not confirm this, wrote Citigroup’s foreign exchange strategist Osamu Takashima in a note to clients.

Also Read: Key Events To Watch This Week That May Affect Cryptocurrencies

“We see de-dollarization as a narrative created to justify the weakening in the dollar caused by unwinding positions and hedge ratio adjustments,” wrote Citigroup analysts. The team led by Takashima wrote that despite the DXY index dipping, investors have continued to buy US stocks and bonds.

“We think this risk of USD depreciation should be examined separately from de-dollarization,” wrote the Citigroup strategists. The US economy is doing well, with the stock market at yearly highs. The Nasdaq Composite index is up a whopping 26% year-to-date. The S&P 500 index surged 17% and the Dow Jones is up close to 10% YTD.

De-Dollarization Has No Impact on US Dollar’s Decline: Citigroup

US Dollar Stock Market
Source: iStock

The performance of the US dollar is not connected to de-dollarization, wrote Citigroup’s note to clients. Both are separate from each other with no interconnection in the broader markets. However, the strategists remain bearish on the US dollar and predicted that it could decline further. The US dollar could fall to $1.20 per euro and also weaken against the Japanese yen, falling to 135. The analysts wrote that the USD could fall to 135 vs the yen in 2026, which is a steep 9% decline.

  • De-dollarization
  • US DOLLAR

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