[THE INVESTOR] The South Korean Central bank remained wary on Oct. 4 for a redenomination of the Korean won.

“A cautious approach is needed for a redenomination due to heightened economic uncertainties at home and abroad,” the BOK said in a report to Kim Jong-min, a lawmaker of the main opposition Minjoo Party of Korea, for an annual parliamentary audit of the BOK.

The central bank said a redenomination could offer public convenience in calculation and enhance the status of the Korean currency abroad.

Still, a redenomination can cause public inconvenience in the process of adjusting to new bills and a possible hike in consumer prices and spread psychological anxiety among economic players, the BOK said.

The BOK said it has carried out no task on a currency redenomination since 2004 when the government decided to put off discussions on the issue.

Redenomination refers to adjusting the nominal value of the Korean won. Currently, the won is higher than other currencies in terms of value. South Korea’s highest denomination bill is 50,000 won, which is worth US$45.

(theinvestor@heraldcorp.com)