Türkiye has successfully concluded its withdrawal from the foreign exchange-protected deposit scheme, known as KKM, as the number of accounts has dwindled to zero, according to the latest banking data. This scheme was initially launched in late 2021 to shield Turkish lira depositors from the adverse effects of currency depreciation. However, a gradual phasing out commenced in 2023 as the country transitioned toward more traditional economic policies.
The KKM scheme saw its renewal process come to a halt in 2025, leading to a steady decline in the volume of remaining accounts. Data from the Banking Regulation and Supervision Agency indicated that the balance had decreased to negligible levels before ultimately reaching zero. This marks a significant milestone in Türkiye’s shift towards conventional economic measures.
Mehmet Şimşek, Türkiye’s Treasury and Finance Minister, highlighted the completion of this exit as a crucial goal within the country’s broader economic program. The transition away from the KKM scheme reflects the government’s commitment to strengthening the nation’s macro-financial stability and restoring confidence in the Turkish lira.
The government’s focus remains on bolstering economic stability and enhancing the trust of both individuals and businesses in the national currency. The end of the KKM scheme is a pivotal step in Türkiye’s efforts to implement policies that reinforce macroeconomic resilience and foster a stable financial environment.