Kiwi businesses importing from and exporting to China could be among those who would benefit should the renminbi become fully convertible - which means removing all restrictions so the currency can be bought or sold freely.
The Hong Kong and Shanghai Banking Corporation expects the Chinese currency to become fully convertible as early as 2015, five years earlier than previously thought.
Changes made last year have already allowed the RMB to be used to settle trade transactions between New Zealand and Chinese businesses. Last week, the Reserve Bank of New Zealand and the People's Bank of China established a $5 billion (RMB25b) reciprocal currency arrangement or swap line for that purpose.
Importers Institute secretary Daniel Silva said a fully convertible RMB would be an advantage to its 300 members, more than half of which import about 70 per cent of their clothing and textile requirements from China, as they would have a "second currency" option when transacting business with China manufacturers.
"The RMB is pegged to the US dollar but is at times lower than the US dollar, like at the moment. It will be good for importers to have a choice.
"Making it fully convertible means easier access to the currency for our members."
HSBC New Zealand global payments head Cath Henry said a fully convertible RMB would simplify pricing and reduce currency risk. She suggested Kiwi importers and exporters develop their understanding and start trading in RMB now rather than assuming it will not affect them.
"The reality is that New Zealand exporters are competing with other countries in the Asia Pacific region for trading opportunities with China, not with other New Zealand exporters," Ms Henry said. "Removing the need for mainland exporters or importers to enter into currency exchange arrangements should take that component of risk out of any pricing negotiation."
ANZ New Zealand transaction banking head Gavin Toole said dealing in RMB could potentially give Kiwi importers and exporters a competitive advantage as Chinese customers were likely to be more comfortable trading in their own currency.
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