Türkiye has officially concluded its withdrawal from the foreign exchange-protected deposit scheme, known as KKM, as the volume of such accounts has dropped to zero, based on the latest data from banking authorities. This scheme was initially launched in late 2021 to safeguard individuals and businesses with Turkish lira deposits against losses due to currency fluctuations. However, in 2023, Türkiye started to pivot towards more conventional economic policies, prompting a gradual phase-out of the KKM scheme.
By 2025, the renewal of accounts under this scheme was halted, leading to a steady decline in account volumes. According to information from the Banking Regulation and Supervision Agency, the balance of these accounts had dwindled to negligible levels before finally reaching zero. This marks a significant milestone in Türkiye’s economic strategy, as emphasized by Treasury and Finance Minister Mehmet Şimşek.
Minister Şimşek highlighted that the successful completion of the KKM exit process represents a crucial objective within Türkiye’s broader economic programme. The government remains committed to implementing policies that promote macro-financial stability and bolster confidence in the Turkish lira, aiming to create a more robust economic environment.
The transition away from the KKM scheme is part of a broader effort by Türkiye to align with conventional economic practices, reflecting a shift in fiscal strategy after several years of unconventional measures. This development underscores the government’s focus on stabilizing the economy and enhancing the credibility of its monetary policies.
As Türkiye continues on this path, the authorities aim to foster a stable financial landscape that supports sustainable growth. The end of the KKM scheme is seen as a pivotal step in reinforcing the nation’s economic foundations, with ongoing efforts to ensure that the Turkish lira retains its strength and reliability in the global market.