Millionaires, millionaires. Day after day we watch and read about millionaires –– actor millionaire, singer millionaire, heiress millionaire and others. Every day the number of millionaires in the world is increasing with incredible speed. This ‘millionaire’ phenomenon has become very important in the global society. A large number of companies, newspapers and TV stations conduct detailed researches on their treasured assets.
   But, are they all really millionaires?
   A millionaire, according to encyclopaedia, is an individual who resides in a household whose net worth or wealth exceeds one million units of any currency. However, it can also be a person who owns one million units of any currency in cash, bank account or savings account.
   The world has been experiencing rapid development of the global economy since the 19th century. It has reached a point when being a millionaire is not as prestigious it used to be before. Now, there are plenty of millionaires and billionaires around the globe, and because of that they need a new expression for themselves in order to make a distinction between each other. As a result, today we have multimillionaires (net worth of two or more millions), hectomillionaires (net worth of hundred and more millions) and billionaires (net worth of one or more billions). Hectomillionaires and billionaires, millionaires or multimillionaires, who own a few millions, are now considered middle-class millionaires; in the contemporary word, they are just not super-rich.
   The Annual World Wealth Report 2007 (the report on individuals with a net worth of at least US$1 million in all assets except their primary residence) from Merrill Lynch compiled by Capgemini, says that the World’s High Net Worth (HNW) population grew to 9.5 million with their assets raised to US$37.2 trillion. Also, Merrill Lynch reports that there are 9.5 million (HNWI) millionaires worldwide, and 95.000 multimillionaires (UHNWI with over US$30 million). In 2007, Forbes Magazine reported that there are 946 billionaires in the world with total accumulated wealth of US$3.5 trillion.
   A High Net Worth Individual (HNWI) is a person with a high net worth of US$1 million and plus in investible assets (not including primary assets). An Ultra High Net Worth Individual or Individuals (UHNWI) refers to individuals or families who have at least US$30 million in investible assets.
   Therefore, a millionaire is an individual who owns one million units of any currency. According to private banking, a millionaire is a person who owns one million of US dollars. However, individuals who have EU€800,000 are not counted as millionaires in their country, but if we exchange this amount for the US dollars, these individuals become millionaires.
   So, can the reports on the number of the world’s millionaires be correct?
   There is no internationally recognised agreement to regard the US dollar as the currency for identifying (counting) the world’s or individuals’ wealth. The United States dollar (USD) has, however, been the ‘de facto’ world currency since the 20th century, and as of 2007 dollar had the largest share at 63.3 per cent of foreign reserve holdings; the euro had some 26.5 per cent.
   However, since the year 2000, the dollar share is falling and the Euro share is rising. As of December 2006, the euro surpassed the dollar in the combined value of cash in circulation. The value of the Euro notes in circulation has risen to more than EU€610 billion, equivalent to US$800 billion; therefore, the Euro became the currency with the highest combined value of cash in circulation in the world.
   One million of the US dollars exchanged in other currencies do not always make millionaires. For example, the US$1million on 23 May 2008 at the exchange rate is equivalent to EU€634,698.99 (euros), UK £505,114.98 (pounds), KWD265, 450.01 (Kuwait dinar).
   Looking at the above example we can see that a Kuwait dinar (KWD) is the strongest currency unit. In fact, the KWD is the world’s highest valued currency unit and from May 20, 2007 the KWD was re-pegged to a basket of currencies. Yet, a Kuwaiti dinar is not so-called ‘hard currency’, is not of very much use outside Kuwait, and is bound to the economy of that country.
   On the other hand, the UK pound and the EU euro are hard currencies. They are reserve currencies, and currencies with a good buying power which are widely accepted as a reliable store of value. But, we don’t see them as a model for counting world wealth.
   The US dollar (USD) is not the strongest currency unit, especially not now; even the Cuban Convertible Paso (CUC) and the Azerbaijan Manat (AZN) are stronger than the USD. Therefore, using the USD as the currency unit or a model for identifying millionaires is giving the wrong picture of who is regarded as a millionaire in the world.
   It is very simple: companies that conduct researches should conduct their researches based upon the highest valued currency, if not the KWD, then the EU euro or the UK pound.
   Consequently, what should be a definition of a millionaire? Perhaps a millionaire is an individual whose net worth of wealth exceeds a sufficient amount of units of any currency when exchanged worth one million units of the world’s highest valued currency unit, or the world’s highest anchor currency unit. He can also be a person who owns enough units of any currency which, when exchanged, is worth one million units of the world’s highest valued currency unit, or the world’s highest anchor currency unit in cash, bank accounts and savings.
   If one person has enough currencies to buy one million of the world’s highest valued currency unit or the world’s highest anchor currency unit, then that person should be counted as a millionaire. This will make some sense and bring back the original meaning of being a millionaire and a billionaire.
   Ivan Simic
   Belgrade, Serbia