Uganda’s shilling, the world’s worst-performer this year, gained for the second day as dollar inflows increased amid lower demand for the greenback. The currency of East Africa’s third-biggest economy appreciated 0.3 percent to 2,807.75 per dollar by 2:41 p.m. in the capital, Kampala, according to data compiled by Bloomberg. The currency closed at 2,815 on Sept. 2. “Basically there is a lack of dollar demand and we saw increased inflows last week to the non-governmental sector,” Faisal Bukenya, the head of currency trading at Barclays Bank of Uganda Ltd. said by phone from Kampala. “We have seen inflows of the dollar increasing.” Local demand for the U.S. currency has dropped because major buyers have just concluded their end-of-month transactions, he said. The shilling has slumped 9.2 percent in the last two months and 18 percent this year against the dollar, making it the world’s worst-performing currency during both periods. A surge in food and fuel prices pushed inflation to a more than 18-year high of 21.4 percent in August from 18.8 percent in July, the Uganda Bureau of Statistics said on Aug. 31. To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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