Why did the military ruin the Pakistani currency in 1982?

[nahtanbob]

In 1981 oil prices were $36 per barrel which was the highest in a long time

 

[Realtalk108]

Renminbi is pegged to the US dollar and Pakistani Rupee was pegged to the British Pound for 35 years until 1982.

China keeps RMB is semi-pegged to the dollar by buying a massive amount of dollars. They do it to keep the exchange rate steady. It's not automatic.

OTOH when RMB starts to fall they sell those dollars to stop it. Also they have strict capital controls.

So RMB isn't actually 'pegged' to the dollar at all. It looks so because China continuously uses its Forex buffer (some 3 trillion USD) to keep it steady.

So all you would have to do now is to build up similar Forex reserve to do so.