A new academic study published in the Journal of Open Innovation: Technology, Market, and Complexity introduces a formal framework for something that has largely been discussed in abstract terms: “BRICSization.”
The term refers to the collective effort by BRICS nations—Brazil, Russia, India, China, and South Africa—to reduce reliance on the U.S. dollar in global trade and financial systems.
Rather than relying on rhetoric or isolated policy moves, the authors built a quantitative BRICSization Index, using the Morris code methodology, to measure each country’s readiness to move away from the dollar between 2003 and 2022.
What the Index Shows
The results are revealing—and uneven:
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Brazil, China, and South Africa each scored 93%, signaling a high capacity to reduce USD dependence.
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India and Russia scored just 37%, reflecting continued structural reliance on the dollar.
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The overall BRICS average came in at 72%, suggesting meaningful progress—but far from uniform alignment.
In other words, BRICS de-dollarization is not a coordinated march forward. It’s a fragmented process moving at different speeds, constrained by domestic realities, trade structures, and financial system maturity.
Progress Without Synchronization
One of the paper’s central conclusions is that de-dollarization cannot succeed through isolated action. Countries attempting to move too quickly—especially those deeply tied to USD-based systems—risk triggering capital flight, currency instability, or economic contraction.
The study emphasizes that abrupt exits from dollar dependence carry real downside risk, particularly for emerging economies that still rely on dollar liquidity, dollar-denominated debt, or trade settlement infrastructure.
This explains why BRICS rhetoric often runs ahead of execution.
Why This Matters Beyond BRICS
The authors also examine BRICS’ potential influence on developing nations outside the bloc, suggesting that successful experimentation with non-dollar trade frameworks could encourage broader adoption of alternative monetary arrangements.
But the takeaway is clear:
De-dollarization is not an on/off switch. It’s an infrastructure problem.
It requires payment rails, settlement systems, liquidity coordination, and trust—elements that take years, not headlines, to build.
The Bottom Line
BRICSization is real, measurable, and advancing—but unevenly and cautiously.
The dollar isn’t being “replaced,” yet it is being worked around, selectively and strategically.
For countries—and investors—watching this shift, the signal isn’t collapse. It’s gradual realignment, with winners and laggards emerging based on who can adapt without breaking their own financial systems in the process.