Türkiye has successfully concluded its withdrawal from the foreign exchange-protected deposit scheme, commonly referred to as KKM, with official banking reports indicating that the account volumes have now dropped to zero. This scheme, initially launched in late 2021, was aimed at safeguarding the deposits of individuals and businesses holding Turkish lira from the adverse effects of currency depreciation. However, a policy shift towards more traditional economic strategies in 2023 prompted the authorities to begin phasing out the scheme.
By 2025, renewals under the KKM program were discontinued, leading to a gradual decrease in the volume of these accounts. The Banking Regulation and Supervision Agency’s data highlighted that the balances had already diminished significantly before ultimately reaching zero. This strategic move aligns with Türkiye’s broader economic objectives, as outlined by Treasury and Finance Minister Mehmet Şimşek.
Minister Şimşek emphasized that the completion of the KKM exit process represents a significant milestone within the country’s economic agenda. The decision to phase out the scheme is part of a broader commitment to reinforcing macro-financial stability and enhancing confidence in the Turkish lira. This approach is expected to contribute to a more resilient financial environment in Türkiye.
The KKM scheme was a critical component in Türkiye’s efforts to mitigate the impact of volatile currency movements on the national economy. As the government navigates this transition, it remains focused on implementing policies that bolster financial stability and instill greater trust in the national currency. The end of the KKM program marks a pivotal step in Türkiye’s journey towards more conventional economic practices.