Türkiye has successfully concluded its withdrawal from the foreign exchange-protected deposit scheme, known as KKM, as the account volumes have now reached zero, according to the latest data from banking authorities. The KKM scheme was initially implemented in late 2021 with the goal of safeguarding Turkish lira deposits held by individuals and businesses from potential depreciation. However, in 2023, the government began transitioning towards more traditional economic strategies, leading to a gradual phase-out of the program.
By 2025, the process of renewing accounts under the KKM scheme was officially halted, and since then, the volume of these accounts has been in continuous decline. The Banking Regulation and Supervision Agency’s data indicated that the balances had diminished to minimal levels before eventually hitting zero. This development marks a significant milestone in Türkiye’s shift towards more conservative fiscal policies.
Mehmet Şimşek, Türkiye’s Treasury and Finance Minister, highlighted that the completion of the scheme’s exit aligns with a major goal within the nation’s economic agenda. Emphasizing the importance of this transition, Şimşek affirmed that the focus will remain on implementing policies that bolster macro-financial stability and enhance public confidence in the Turkish lira.
The discontinuation of the KKM scheme is part of a broader effort by Turkish authorities to stabilize the national economy and promote sustainable growth. By moving away from extraordinary measures like the KKM, Türkiye aims to reinforce the integrity and resilience of its financial system. As the country continues on this path, the government is committed to maintaining policies that support the strength and reliability of its currency.