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Lebanon's struggling currency was devalued to 38,000 liras to the American dollar on the central bank's exchange platform Sayrafa on Tuesday.

The rate had been 31,200 to the dollar on Friday, Turkish news agency Anadolu reported.

The decision was made because of speculation and dollars being smuggled abroad, "causing inflation in the markets",Ìýaccording to the Lebanese central bank.

There are several rates in use in Lebanon, with the official 1,500-lira-to-dollar rate now mostly relegated to disuse amid an economic collapse in the country.

The lira had on Tuesday been going for over 47,000 per US dollar in black-market and exchange-house trading, news agency Reuters said.

Just minutes after the central bank revealed the currency's devaluation, it was under 43,000, according to traders.

Currently, Lebanon's population typically relies on black-market currency values.

Lebanon's economy has been in free fall for three years, with its lira nosediving and the vast majority of the population now pulled into poverty.