Citigroup Inc. analysts have dismissed the idea that global investors are seeking to reduce their reliance on the dollar, describing the de-dollarization narrative as a “mirage” that’s not supported by economic data.

The greenback has tumbled nearly 9% this year, but US balance of payment statistics do not confirm notable selling of dollar assets, strategists led by Osamu Takashima wrote in a note to clients. And there’s no significant correlation between inbound foreign portfolio investment and the currency’s performance over the long run, they added.

“We see de-dollarization as a narrative created to justify the weakening in the dollar caused by unwinding positions and hedge ratio adjustments,” wrote the strategists. “We think this risk of USD depreciation should be examined separately

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