We explore the role of charge exchange in generating anisotropy in the ring current during recovery phase inside the plasmapause. A simplified scenario is studied in which the anisotropy evolves from an initially isotropic distribution. Other cases may be easily studied by shifting the time axis. When the anisotropy becomes large enough, the proton ring current just inside the plasmapause will emit ion electromagnetic cyclotron waves (which can cause stable auroral red (SAR) arcs by electron heating) with subsequent destruction of anisotropy in the wave emission process. As long as finite amplitude waves are present, gain and loss of anisotropy will be in rough equilibrium, and the pitch angle distribution will no longer evolve as it would if only charge exchange were operating. The amount of energy lost to the waves is related to the charge exchange loss rate with the aid of quasi-linear moment equations; it seems to be adequate to power SAR arcs. The role of heavy ions (He+, He++, and O+) is considered: generally, these ions tend to damp the proton-generated waves. This damping is quite sensitive to the very low energy (0.2, proton EMC waves will most likely not be generated by charge exchange beginning from initial isotropy.