Türkiye has officially concluded its withdrawal from the foreign exchange-protected deposit scheme, known as KKM, as the volume of these accounts has now dropped to zero. This milestone comes after official banking data confirmed the decrease. The KKM scheme was initially launched in late 2021 with the aim of shielding Turkish lira depositors, including both individuals and businesses, from the financial losses incurred by currency depreciation.
In 2023, the Turkish government began to phase out the KKM scheme in favor of more traditional economic policies. This transition marked a significant shift in Türkiye’s financial strategy. By 2025, authorities had ceased renewals under the KKM program, leading to a gradual decline in the volume of these accounts. The Banking Regulation and Supervision Agency’s data highlighted that the balances had become negligible before finally reaching zero.
Mehmet Şimşek, the Treasury and Finance Minister, acknowledged the completion of the exit from the KKM as a pivotal achievement within Türkiye’s broader economic agenda. He emphasized that this development aligns with the government’s objectives to fortify macro-financial stability.
Looking ahead, Türkiye’s government is committed to pursuing policies that bolster confidence in the Turkish lira and enhance overall economic stability. This strategic focus is intended to ensure a robust financial environment moving forward and to sustain economic growth and stability in the country.