REUTERS, London

The custodians of trillions of dollars of global central bank reserves are eyeing a move away from the greenback into gold, the euro and China’s yuan as the splintering of world trade and geopolitical upheaval spark a rethink of financial flows.

According to a report by the Official Monetary and Financial Institutions Forum (OMFIF) due to be published later on Tuesday, one in three central banks managing a combined $5 trillion plan to increase exposure to gold over the next one-to-two years after stripping out those planning to decrease, the highest in at least five years.

The survey of 75 central banks -- carried out between March and May -- gives a first snapshot of the repercussions of US President Donald Trump’s April 2 Liberation Day tariffs that sparked market turmoil and a slide in the safe-haven dollar and US Treasuries.

Gold, which central banks have already been adding at a record pace, was seen benefiting even further longer term, with a net 40 percent of central banks planning to increase gold holdings over the next decade.

“After years of record-high central bank gold purchases, reserve managers are doubling down on the precious metal,” OMFIF said.

The dollar, the most popular currency in last year’s survey, fell to seventh place this year, OMFIF said, with 70 percent of those surveyed saying the US political environment was discouraging them from investing in the dollar -- more than twice the share a year ago.

In currencies, the euro and yuan stand to benefit the most from a diversification away from the dollar.

A net 16 percent of central banks surveyed by OMFIF said they plan to increase euro holdings over the next 12 to 24 months, making it the most in-demand currency, up from 7 percent a year ago, followed by the yuan.

But over the next decade, the yuan is more favoured, with a net 30 percent of central banks expecting to increase holdings and its share of global reserves seen tripling to 6 percent.

Separately, three sources who deal directly with reserve managers, told Reuters they saw the euro as now having the potential to recapture the share of currency reserves lost following the 2011 euro debt crisis by the end of this decade. They cited more positive sentiment among reserve managers towards the euro following Liberation Day.

For the moment, crude is trading lower than it was before Israel launched its attacks on Iran on June 13.

That would mean a recovery to a roughly 25 percent share of currency reserves, from around 20 percent currently, representing a key moment in the bloc’s recovery from the debt crisis that threatened the euro’s existence.