Initially 1 Local Bond = 1 Peso = 1 Dollar, but later the local bond has not good to buy meat of fuel (that came from other provinces), and later you may have a 30% hair cut for everything at the supermarket.

An example: https://en.wikipedia.org/wiki/Patac%C3%B3n_(bond) This is the biggest province and they entered late to the party, so it didn't break the peg.