Türkiye has successfully concluded its withdrawal from the foreign exchange-protected deposit scheme, commonly known as KKM, as official banking data indicates that the volume of such accounts has now reached zero. This scheme was initially launched at the end of 2021, designed to safeguard Turkish lira deposits from the adverse effects of currency depreciation for individuals and businesses. In a strategic shift towards more traditional economic policies, authorities began phasing out the program in 2023.
By 2025, renewals under the KKM scheme were ceased, leading to a gradual decrease in the volume of remaining accounts. Recent data from the Banking Regulation and Supervision Agency confirmed that the balance had dwindled to a negligible amount before ultimately dropping to zero. This development signifies a significant milestone in Türkiye’s broader economic strategy, as stated by the country’s Treasury and Finance Minister, Mehmet Şimşek.
Minister Şimşek highlighted that the completion of the KKM scheme’s exit process aligns with a key objective of the nation’s economic programme. The government remains committed to pursuing policies that bolster macro-financial stability while enhancing public confidence in the Turkish lira. This move is seen as part of a broader initiative to restore economic balance and encourage stability within the nation’s financial framework.
As Türkiye continues to navigate these economic changes, the government aims to reinforce the credibility and strength of the national currency. The transition away from the KKM scheme reflects a deliberate effort to adapt to evolving economic conditions and to maintain a resilient financial environment. Officials are optimistic that these measures will contribute to the long-term stability and growth of the Turkish economy.