The USD can be used anhyhere in dubai?

is it totally convinient to use usd at some groceries licour stores or even some small personal markets rather than aed?

With the value of the dollar dropping, I wouldn't count on that for long. They just stopped using them at the Taj Mahal and other tourist sites in India, I think before long other places might start following suit.

Yes, it can be used.

The UAE Dirham (AED) is just a Dollar painted in a x3.67 Arabic note.

$1 = AED3.67

FYI, licor stores are not what you imagine. There are specific stores that sell licor like African&Eastern; where you would need an ID that identifies you are 25 & above.

Yes, the UAE Dirham is used anywhere in Dubai, and anywhere in the other 6 emirates of the UAE.

Liquor is very controlled here, you can only get it by buying it from hotels, or bars I think, and you won't just find it easily in a grocery store. In most grocery stores they have a section for 'non-muslims' where they sell pork, etc.

Note: The UAE is not very tolerant of drunk driving, over-drinking, etc. They are more strict about these things then in your home country (assuming you are from a Western or European country).

Dubai is in a muslim country, and all muslims are not allowed to drink alcohol, so that is why liquor will be harder to find. You have to go through hotel chains, i.e. the Hilton to buy. =]

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Talking about Dubai, can be exchanged for local currency on moon also.

Yes, most of the big/medium sized shops accept USD. But the change you'll get will be in AED.

About liquor, you need a license to buy liquor in Dubai. I don't think you'll be able to buy liquor from MMI or African+Eastern. These are the two outlets to get liquor from (legally).

You can get liquor from Ajman or Umm Al Quwain.