Türkiye has concluded its withdrawal from the foreign exchange-protected deposit initiative, known as KKM, with official banking figures confirming that the account volumes have dropped to zero. This scheme, launched towards the end of 2021, was designed to shield Turkish lira deposit holders, both individuals and businesses, from the adverse effects of currency devaluation. However, in 2023, the government initiated a gradual phase-out of the program as it pivoted towards more traditional economic policies.
By 2025, the renewal of accounts under the KKM scheme was halted, leading to a continuous decline in the account volume. Information from the Banking Regulation and Supervision Agency indicated that the balance had dwindled to insignificant figures before ultimately reaching zero. This development marks a significant milestone in Türkiye’s economic strategy.
Mehmet Şimşek, the Treasury and Finance Minister, highlighted that this completion of the exit process aligns with a crucial objective in the country’s broader economic program. He emphasized the government’s ongoing commitment to policies that aim to fortify macro-financial stability and bolster confidence in the Turkish lira.
The conclusion of the KKM scheme reflects a broader shift in Türkiye’s financial landscape, as policymakers focus on reinforcing economic stability. The government’s strategy continues to prioritize strengthening the national currency while aiming to build trust in its economic framework.