5 Cent Military Payment Certificate - Series 661 - MPC Currency

5 Cents Military Payment Certificate, Series 661. MPCs evolved from Allied Military Currency initially used in Europe during World War II. This was a response to the large amounts of US Dollars circulated by American servicemen in post-World War II Europe. Because the futures of local governments were unclear, the local citizens might not trust local currencies. Because they preferred a stable currency like U.S. dollars, local civilians often accepted payment in dollars for less than the accepted conversion rates. As dollars became more favorable to hold, the local currencies became inflated, thwarting Allied plans to stabilize local economies. Troops paid in dollars found merchants were willing to convert unlimited amounts of US banknotes to the local currency at the floating (black market) conversion rate. It was much more favorable to the GIs than the government fixed conversion rate. Servicemen thus profited from the more favorable exchange rate on the black market. Read more at https://en.wikipedia.org/wiki/Military_payment_certificate