Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme known as KKM, as official banking figures confirm the account volumes have dwindled to zero. This scheme was initially implemented at the end of 2021 to safeguard Turkish lira deposits from devaluation losses. However, a shift towards more traditional economic policies in 2023 prompted authorities to phase it out gradually.
By 2025, renewals within the KKM framework had been halted, and the balance of accounts diminished steadily. Data from the Banking Regulation and Supervision Agency indicated that the account volumes had reached insignificant levels before ultimately hitting zero. This move aligns with the Turkish government’s broader economic strategy to foster stability and confidence in its national currency.
Treasury and Finance Minister Mehmet Şimşek highlighted the completion of this exit process as a significant milestone in Türkiye’s economic agenda. He noted that achieving this objective was crucial for the country’s ongoing economic reforms.
The Turkish government remains committed to policies that enhance macro-financial stability and bolster trust in the Turkish lira, as underscored by Minister Şimşek. This strategy is part of a broader effort to stabilize the economy and ensure long-term growth.