If you haven’t been pay attention, a lot of people have been questioning the power of the US dollar and whether it should be used as a reserve currency by countries. The main country that is making headlines for this is China because they have a lot of treasury bonds that they’re afraid are going to get destroyed with negligent monetary policy.

Either way, people seem to think that the G8 leaders would talk about it at their event. I think it is no surprise that this wouldn’t be talked about. I thought I’d just point this out. source

July 9 (Bloomberg) — Leaders of the world’s biggest developed and emerging nations avoided a debate over the dollar’s role in the global economy as they agreed not to devalue their currencies to promote their exports.

With officials from Brazil, India, China and Russia pushing consideration of alternative reserve currencies, their joint statement’s language on foreign exchange echoed an agreement at an April summit of the Group of 20.

The leaders agreed to “refrain from competitive devaluations of our currencies,” according to the statement released after their meeting today at the G-8 summit in L’Aquila, Italy. They also agreed to “promote a stable and well-functioning international monetary system.”

The global financial crisis and the surge in U.S. borrowing have prompted Russian President Dmitry Medvedev to advocate diversification away from the dollar. Russia and its counterparts have yet to come up with a viable alternative.

British Prime Minister Gordon Brown told reporters today “there was not a serious discussion” about the topic.

“To talk about the long-term future of the world economy and the arrangements that are necessary is something that world has got to do, but I don’t want to give the impression that there’s a major change about to happen around the corner which will mean that present arrangements are disturbed,” Brown said.