Türkiye has successfully phased out its FX-protected deposit scheme, known as KKM, with the account volumes officially reaching zero, according to recent banking data. This scheme, introduced in late 2021, was designed to shield Turkish lira deposits from the adverse effects of currency depreciation. However, in 2023, the government began transitioning towards more traditional economic policies, leading to a gradual discontinuation of KKM.
By 2025, authorities ceased renewals under the KKM scheme, leading to a consistent decrease in account volumes over time. Data from the Banking Regulation and Supervision Agency indicated that balances had diminished to minimal levels before eventually hitting zero, marking the complete exit from the program.
Treasury and Finance Minister Mehmet Şimşek highlighted that the successful completion of the KKM exit process represents a significant milestone in Türkiye’s economic agenda. The dissolution of the scheme aligns with broader efforts to solidify the nation’s financial stability.
The Turkish government remains committed to enhancing macro-financial stability and bolstering confidence in the Turkish lira. These ongoing policy initiatives are aimed at creating a more resilient and dependable economic environment, according to Minister Şimşek.