Fraser has been seen as a rising star on Wall Street, and last year was seen as a CEO candidate by Wells Fargo & Co's board. The bank eventually settled on former JPMorgan executive Charles Scharf.
A 16-years veteran at Citi, who first joined to run client strategy in the investment bank, Fraser was promoted to the role of president in October last year.
She had been running the bank's Latin America business, including its Citibanamex division in Mexico, before that.
Fraser has been elected to the board, the bank said.