For instance, Charles Engel from the University of Wisconsin compared price differences for the same goods in cities on both sides of the Canadian and US border with price differences between different cities in the US. Although US and Canadian cities have largely the same language and culture, as well as free trade, the different currencies cause prices to vary as much on each side of the border as between cities at opposite ends of the US. Finally, of course, there is the increasingly important role of the euro as a dominant international currency. The most immediate gain from this is an increase in seignorage income to the extent that the euro is more widely held outside the euro area than the sum of the currencies that preceded it. Taken as a whole, the euro area is the world’s largest exporter and importer, accounting for about one-fifth of international trade. Despite this the US dollar is still the most common counterparty in foreign exchange trading and the widespread use of the dollar as a ‘vehicle currency’ in itself reinforces its status. Given that the euro is still a young currency it is likely to grow in importance and may in time have the potential to catch up with the dollar’s share in the foreign exchange markets.
  Total merchandise export earnings rose by 71.2 percent to $ million in 2010 from $ million recorded in 2009, following increases in both metal and non-traditional export earnings.   Metal export earnings rose by 81.6 percent to $ million in 2010 from $ million in 2009, of which copper export earnings were US $ million and cobalt export earnings were US $ million. This was explained by the rise in copper and cobalt production following increased capacity utilisation at various mines and higher global market prices.   Exports of non-traditional products registered a growth of 34.3 percent to $ million in 2010 from $ million the previous year. This was driven by higher exports of copper wire, cane sugar, burley tobacco, cotton lint, electrical cables, gemstones, maize and maize seed, and wheat and meslin.   Total merchandise imports grew by 40.3 to $ million in 2010 from US $ million in 2009. Exchange rate   Following strong macroeconomic fundamentals and increased supply in foreign exchange, the Kwacha performed favourably against all the major traded currencies in 2010, except for the South African Rand. The Kwacha appreciated by 4.7 percent against US dollar to trade at $ from $ in 2009.   Similarly, the Kwacha appreciated by 6.0 percent against the British Pound and by 8.0 percent against the Euro to trade at £ and € respectively. 2  BIS central bankers’ speeches  However, the Kwacha registered a depreciation of 8.8 percent against the South African Rand.