Although Government has opted for an exchange control relief as the main focus area, FEDUSA is of the opinion that this leaves the option open for tax measures. In normal times, a tax on capital flows may lead to less capital flows to South Africa. FEDUSA is therefore of the opinion that the exchange control relief is the right option under the current circumstances. The PBC indicates that as emerging market exchange rates appreciate, they suck in imports from advanced economies and struggle to expand their export markets. The massive trade deficits that exchange rate appreciation will generate for countries in Southern Africa will constitute the basis for advanced economies to exit the crisis. The PBC is also of the view that financing long-term investment, using short-term capital inflows, will create a massive imbalance in the national balance sheet, thus maturity mismatches will result, and high interest rates will be required to keep these mismatches away from binding.