AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
The global rush by central banks and investors to buy gold has driven prices to record highs. Since early 2024, demand from central banks to diversify reserves and hedge against dollar risks and sanctions threats has fueled a strong rally in gold. Recent inflows into gold-backed exchange-traded funds (ETFs) have also surged.
JPMorgan believes central banks have yet to complete their “de-dollarization” reallocation. Emerging market central banks—particularly those of China, India, and Saudi Arabia—have been especially active, pushing gold’s share in official reserves to nearly 20%. At the same time, investors increasingly recognize gold’s hedging properties against stagflation, recession, and policy risks.
Kamau Thugge, Governor of Kenya’s Central Bank, recently stated that the country is considering adding gold to its foreign exchange reserves to reduce reliance on the U.S. dollar and other currencies. Speaking during the IMF and World Bank Spring Meetings in Washington, he revealed: “We have set up a working group to assess the feasibility—this is indeed something we are actively considering, but no timeline has been set yet.”
Thugge noted that Kenya hopes to secure a new IMF assistance program under “the same terms as before.” Given the current global risk environment, the program’s concessional loans and policy support would be an ideal solution. In March this year, Kenya’s four-year, $3.6 billion IMF program was terminated early after failing to meet certain targets, costing Kenya approximately $850 million.
Despite new risks from the Trump administration’s trade policies, Thugge remains optimistic about Kenya’s economic growth this year. The central bank expects growth to “significantly exceed last year’s estimated 4.6%,” with U.S. tariffs projected to reduce GDP growth by only 0.2%. Favorable weather conditions will make agriculture a key growth driver, while lower interest rates will stimulate investment and consumption. Last year’s pressures have eased, and Kenya has already begun loosening monetary policy.
