Türkiye has officially wrapped up its foreign exchange-protected deposit scheme, known as KKM, as the volume of accounts dwindled to zero, based on the latest banking figures. Initially launched in late 2021, the scheme aimed to shield Turkish lira depositors from the adverse effects of currency depreciation. However, a strategic shift towards more traditional economic policies triggered its gradual phase-out starting in 2023.
By 2025, the government had ceased renewals under the KKM scheme, leading to a consistent decrease in account volumes. According to data from the Banking Regulation and Supervision Agency, the balances had already reached negligible levels before the final drop to zero. This marked a significant step in Türkiye’s ongoing economic reforms.
Treasury and Finance Minister Mehmet Şimşek highlighted the conclusion of the KKM exit process as a significant milestone in the country’s broader economic program. The minister emphasized that this move aligns with the government’s plans to bolster macro-financial stability and reinforce confidence in the Turkish lira.
The Turkish government remains committed to implementing policies that support economic stability and enhance the credibility of the national currency. The elimination of the KKM scheme is seen as a pivotal component of these efforts, reflecting Türkiye’s dedication to restoring confidence in its financial system while navigating the challenges of economic reform.