Türkiye has officially concluded its withdrawal from the foreign exchange-protected deposit scheme, known as the KKM, as the number of accounts has dwindled to none, according to the latest banking data. This scheme was initially launched at the end of 2021 with the goal of shielding both individuals and businesses with Turkish lira deposits from potential losses due to currency depreciation. However, in 2023, as the nation shifted towards more traditional economic strategies, the authorities decided to gradually wind down the program.
By 2025, the decision was made to cease renewals under the KKM initiative, which led to a consistent decrease in account volumes. The Banking Regulation and Supervision Agency’s reports indicated that the balance had already decreased to minimal levels before ultimately reaching zero. This phase-out aligns with Türkiye’s broader economic strategy under the leadership of Treasury and Finance Minister Mehmet Şimşek.
Minister Şimşek emphasized that the successful conclusion of this exit process represents a significant milestone within Türkiye’s economic agenda. He highlighted that the government remains committed to policies that will enhance macro-financial stability while bolstering confidence in the Turkish lira.
The KKM scheme, at its inception, was a critical measure to counteract the volatility faced by the Turkish lira. Yet, as Türkiye’s economic landscape evolved, the move towards phasing out the scheme reflects a broader transition to conventional fiscal measures. This adjustment is part of a wider effort by the government to stabilize the economy and fortify domestic currency strength.