- A new economic geopolitical framework called BRICSization measures BRICS countries’ dependence on the US dollar.
- Brazil, China, and South Africa show high readiness to move away from the US dollar with a 93% de-dollarization score.
- India and Russia remain heavily reliant on the US dollar, scoring only 37%, signaling economic vulnerability without it.
- The overall BRICSization index stands at 72, reflecting uneven progress in decreasing reliance on the US dollar.
- BRICS nations are encouraging developing countries to shift from the US dollar to alternative monetary systems.
A recent study introduced an economic geopolitical model known as BRICSization to analyze the BRICS alliance’s move away from the US dollar between 2003 and 2022. The researchers, professors at the University of Isfahan, applied the Morris Code method to develop a BRICSization index, quantitatively measuring each member’s independence from the US dollar.
According to the index, Brazil, China, and South Africa have scores reaching 93%, indicating a strong ability to abandon the US dollar. In contrast, India and Russia scored 37%, revealing their economies would face significant difficulties without the US currency. The combined BRICSization score for all five founding members is 72, showing overall progress but with notable disparities.
The Morris Code method was used to test various scenarios of de-dollarization, producing different outcomes and sequences. The uneven results highlight that while some BRICS countries are ready to reduce reliance on the US dollar, others still depend heavily on it. The study emphasizes the need for coordinated efforts to stabilize the move away from the US dollar.
The research also discusses how the BRICS group has influenced developing countries to adopt BRICSization strategies. It explores the possibility of creating an alternative international monetary framework aimed at weakening the prominence of the US dollar. The analysis supports the claim that BRICS can play a significant role in reshaping global currency dynamics, but stresses the uneven readiness among its members as a challenge.
For further details on this concept and its implications, see the original BRICSization article.
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