LONDON, June 4 Reuters More global reserve managers plan to increase exposure to the now highyielding U.S. dollar as their interest in China39;s yuan has soured due to low returns and geopolitical tensions, the Official Monetary and Financial Institutions Forum said.

The data, from a survey carried out by the think tank and published on Tuesday, challenges at least in the short term the trend towards dedollarisation, the idea that countries will diversify away from dollars.

A net 18 of reserve managers surveyed said they intended to boost exposure to the U.S. dollar in the next 1224 months, more than any other currency. They cited the dollar39;s role in global trade and expectations of higher relative returns as reasons.

But demand for China39;s currency among reserve managers has stalled.

This is the first year we39;ve seen any meaningful share of reserve managers looking to downscale their renminbi holdings, said Nikhil Sanghani, OMFIF Economic and Monetary Policy Institute managing director, referring to China39;s currency by its other name.

Some 12 of 73 central bank reserve managers surveyed by OMFIF plan to reduce their yuan holdings in the next 1224 months, while 13 plan to increase them.

In 2023 just 3 said they intended to reduce yuan holdings, while none did in 2022 or 2021 when over 30 of respondents said they planned to up their exposure to the Chinese currency.

Lots of managers flagged market transparency and geopolitics as some hurdles, and, at…