Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, known as KKM, after the volume of such accounts diminished to zero. This marks a significant milestone in the country’s economic strategy, according to recent data from the banking sector. The KKM initiative was originally established in late 2021, aiming to shield Turkish lira deposit holders from losses due to currency depreciation. However, starting in 2023, Türkiye’s economic policymakers began transitioning toward more traditional economic approaches, initiating a gradual phase-out of the scheme.
By 2025, the renewal of accounts under the KKM scheme was officially halted. Over time, the volume of these accounts saw a consistent decrease. This trend was confirmed by the Banking Regulation and Supervision Agency, which reported that the account balances had trickled down to negligible levels before ultimately reaching zero.
Commenting on this development, Treasury and Finance Minister Mehmet Şimşek emphasized the significance of completing the exit from the KKM scheme. He described it as a critical goal within Türkiye’s broader economic program, highlighting its importance in the nation’s ongoing financial strategy.
Looking ahead, Minister Şimşek reaffirmed the government’s commitment to pursuing policies that bolster macro-financial stability and enhance confidence in the Turkish lira. These efforts are part of a broader initiative to fortify the country’s economic landscape, ensuring sustained growth and stability in the financial sector.