This would not affect the small merchants and dealers => I slightly disagree with you, I believe this is going to affect retail market, small time merchants, food and construction industry, at least for the next few weeks.
It will affect only because there wouldn't be enough new bills in the hands of people to spend. Once the sufficient amount of new bills are circulated in the market, it will all be back to normal. But there won't be any long term affect.
People should be able to handle this for a couple of weeks, based on credit/loans and borrowing.