Türkiye has successfully concluded its withdrawal from the foreign exchange protected deposit scheme, known as KKM, as the account volumes have diminished to zero, recent data from the banking sector confirms. Initially implemented in late 2021, the scheme aimed to safeguard both individuals and businesses holding deposits in Turkish lira against losses from currency depreciation. However, in 2023, the authorities decided to gradually phase out the program in favor of more traditional economic policies.
By 2025, the renewal of deposits under the KKM scheme was ceased, leading to a progressive decline in account volumes. Data provided by the Banking Regulation and Supervision Agency indicated that the balance had been reducing steadily, eventually reaching zero. This marks a significant milestone in Türkiye’s economic strategy, aligning with its broader agenda to stabilize the economy.
Finance Minister Mehmet Şimşek emphasized that the conclusion of the KKM exit process represents a crucial achievement within Türkiye’s economic framework. He highlighted that this step is part of a larger effort to pursue policies that bolster macro-financial stability and increase faith in the Turkish lira.
The government’s continued focus will be on implementing strategies to maintain economic stability and strengthen confidence in the national currency. The end of the KKM scheme is seen as a move towards reinforcing the country’s financial foundations and aligning with conventional economic practices. This development is expected to play a vital role in Türkiye’s ongoing efforts to enhance economic resilience and credibility.