Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, known as KKM, as the volume of accounts dwindled to zero. This milestone is confirmed by recent data from the country’s banking sector. The KKM scheme was initially launched towards the end of 2021 to shield Turkish lira deposit holders from the impact of currency depreciation. However, in 2023, the authorities began to phase it out, steering towards more traditional economic policies.
By 2025, the government had ceased renewals under the KKM program, leading to a steady reduction in the remaining account volumes. The Banking Regulation and Supervision Agency’s figures indicated that the balance had diminished to negligible amounts before finally reaching zero. This development aligns with Türkiye’s broader economic strategy, as articulated by Treasury and Finance Minister Mehmet Şimşek.
Minister Şimşek emphasized that finalizing the exit from this scheme represents a significant goal achieved within Türkiye’s economic agenda. He noted that the government remains committed to implementing measures that bolster macro-financial stability and enhance trust in the national currency, the Turkish lira.
The KKM scheme’s phase-out reflects a strategic pivot aimed at reinforcing confidence in Türkiye’s financial systems. By moving away from this protective measure, the government signals its focus on more conventional economic approaches. This shift is intended to build a robust economic foundation amidst fluctuating global financial dynamics.
Overall, Türkiye’s transition away from the FX-protected deposit scheme marks a critical step in its ongoing economic reform efforts. As the country continues to navigate through economic challenges, the authorities remain vigilant in pursuing policies that support sustainable growth and stability.