By Lee C. Chipongian Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. is still not worried about the exchange rate volatility and that the peso is only showing its flexibility to market conditions. (BSP) Governor Nestor A. Espenilla Jr. “The peso is just fine,” said Espenilla on Thursday. The peso to the US dollar slowly rose to the mid P51-level in January from its 2018 beginning of P49.95. It ended at an average of P50.39 based on BSP data. According to Espenilla, the peso is “demonstrating flexibility reflecting day-to-day market conditions.” “There will be volatility, runs and corrections, and the public should plan accordingly and factor in exchange risk in their decisions. But, the peso is not expected to meltdown because the underlying economic fundamentals of the economy are healthy,” he said. Espenilla continues to assure the market that the local currency is supported by solid fundamentals and while the country’s balance of payments (BOP) numbers is expected to remain in a shortfall position, it is manageable and should not freefall. “The BOP deficit is very manageable and is but a reflection of an economy that’s growing rapidly in a way that is sustainable,” said Espenilla. “We are very far from any foreign exchange crisis given our large GIR (gross international reserves) buffer and secondary buffers as well as investment grade-rating that guarantees ready market access for any official and commercial financing requirement,” he added. The GIR ended 2017 at $81.569 billion, up from $80.691 billion in the previous year. Last year, the BSP also monitored a BOP deficit of $863 million more than 2016’s $420 million deficit. They expect $1 billion deficit this year mainly because of an increasing import bill to fund a growing economy. The government assumptions for the peso is a range of P49-P52 for 2018 and 2019 from an earlier forecast of P48-P51.