Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, known as KKM, as account volumes have now dropped to zero, according to recent banking data. The KKM scheme was originally launched in late 2021 to safeguard both individuals and businesses with Turkish lira deposits from the financial impact of currency depreciation. However, a shift in 2023 toward more traditional economic policies prompted authorities to gradually phase out the program.
By 2025, renewals under the KKM scheme had been halted, leading to a steady decline in the remaining account volumes. Data from the Banking Regulation and Supervision Agency indicated that the balances had dwindled to nearly negligible levels before ultimately reaching zero. Completing the exit from this scheme represents a significant milestone in Türkiye’s broader economic strategy.
Treasury and Finance Minister Mehmet Şimşek highlighted the completion of this exit process as a major objective of Türkiye’s ongoing economic program. He emphasized the government’s commitment to pursuing policies that bolster macro-financial stability and enhance confidence in the Turkish lira, marking a new phase in economic management for the country.
The conclusion of the KKM scheme is expected to pave the way for further reforms aimed at strengthening Türkiye’s financial infrastructure. As the government continues to implement measures designed to stabilize the economy, the focus remains on fostering a resilient financial environment that can withstand external shocks and support sustainable growth.
With the KKM phase-out now complete, Türkiye looks to solidify its economic framework and restore trust in its currency. The efforts underscore the government’s resolve to navigate the challenges posed by global economic dynamics while ensuring the long-term stability and prosperity of the nation.