Türkiye has successfully concluded its withdrawal from the foreign exchange-protected deposit scheme, known as KKM, as the volume of accounts has dwindled to zero, according to the latest data from the banking industry. This scheme was established in late 2021 with the aim of safeguarding Turkish lira deposits for both individuals and businesses against losses due to currency depreciation. However, in 2023, the authorities began a phased reduction of the scheme in favor of adopting more traditional economic policies.
The process of winding down the KKM scheme saw a halt in renewals by 2025, resulting in a gradual decline in account volumes. Recent data from the Banking Regulation and Supervision Agency confirmed that the balances had reached negligible levels before ultimately hitting zero. This strategic move is part of a broader shift in Türkiye’s economic strategy aimed at stabilizing the economy.
Treasury and Finance Minister Mehmet Şimşek highlighted that completing the exit from the KKM scheme was a significant milestone in Türkiye’s economic plan. He emphasized that this development aligns with the government’s ongoing efforts to bolster macro-financial stability and foster greater confidence in the Turkish lira.
The transition away from the KKM scheme underscores a pivotal moment in Türkiye’s economic policy realignment. By focusing on strengthening financial stability, the government aims to ensure a more resilient economic environment. As the country navigates these changes, maintaining trust in the national currency remains a central priority for economic policymakers.
