The Turkish government has successfully concluded its withdrawal from the foreign exchange-protected deposit scheme, known as KKM, as indicated by the latest banking data showing that the account volume has dropped to zero. This financial program was initially launched in the latter part of 2021 as a measure to safeguard the holdings of individuals and businesses in Turkish lira deposits against losses from currency depreciation. However, in 2023, a shift towards more traditional economic policies prompted officials to gradually phase out the scheme.
By 2025, new renewals under the KKM scheme had ceased, leading to a steady decline in the remaining account volume. The Banking Regulation and Supervision Agency reported that the balances had decreased to negligible levels before eventually hitting zero. The end of this scheme marks a significant step in the country’s economic strategy.
Treasury and Finance Minister Mehmet Şimşek highlighted the importance of completing this exit process, emphasizing that it represents a crucial milestone in Türkiye’s broader economic program. The removal of the FX-protected deposit scheme is seen as part of the government’s efforts to implement more conventional economic measures.
Looking forward, the government intends to continue implementing policies focused on bolstering macro-financial stability and reinforcing confidence in the Turkish lira. The exit from the KKM scheme aligns with these goals, as Türkiye seeks to ensure a more stable and predictable economic environment.
Overall, the conclusion of the KKM scheme is a testament to Türkiye’s commitment to reinforcing its economic framework and fostering a stronger financial system. As the country moves away from unconventional financial protections, it aims to strengthen its currency and maintain economic stability.