The staged withdrawal is not suitable where the purpose of exiting EMU is to achieve an immediate substantial change in the Dutch price level relative to that in the euro area (as would be the case if the aim were to escape a deflationary depression).
Dutch euros could be used freely to settle euro-denominated accounts between Dutch residents (for example, purchases and sellers of goods and services) and to repay euro loans by Dutch banks to Dutch residents.
In the case of Dutch euros falling in value versus the free euro (as where the purpose of leaving EMU is to escape deflation), euro banknotes would go to a premium against Dutch euros (where the premium would be determined by the exchange rate between Dutch and free euros).
Eventually, the Dutch euro deposits would be re-denominated as florin deposits and euro loans by Dutch banks to Dutch residents as florin loans.
If deposits are well below loans and the Dutch euro falls immediately against the euro, then the banks would experience net loss.