As indicated by Mr Lumkile Mondi, exchange rate management creates uncertainty over potential impact of intervention in terms of desired outcomes and their sustainability. The cost of interventions is dependent on the choice of instruments, while an abrupt unwinding of substantial speculative positions could have a destabilising effect, at least in the short-term, but effects could be long-lasting if investors' perceptions are unfavourable. Considering South Africa's low savings propensity and its dependency on foreign capital inflows to finance its current account deficit and funding requirements, negative perceptions may have serious adverse repercussions. The timing of interventions is critical in order to minimise unintended consequences, for example, a negative impact on the cost of investment- related imports, while exports may not recover sufficiently due to weak global demand.