The Turkish government has successfully phased out its FX-protected deposit scheme, known as KKM, as indicated by official banking data showing that the account volumes have now reached zero. This scheme, which was launched towards the end of 2021, aimed to shield individuals and businesses with Turkish lira deposits from the adverse effects of currency depreciation. However, in 2023, the country began a transition towards more traditional economic policies, leading to a gradual discontinuation of the KKM.
In 2025, the renewal of accounts under this protective measure was officially stopped, causing a steady decline in the remaining account volumes. Reports from the Banking Regulation and Supervision Agency indicated that balances had dwindled to negligible amounts before the complete cessation of the scheme. This transition represents a pivotal moment in Türkiye’s economic strategy.
Treasury and Finance Minister Mehmet Şimşek emphasized that the full exit from the FX-protected deposit scheme signifies a significant achievement within Türkiye’s broader economic program. He underscored the importance of this move as part of ongoing efforts to bolster macro-financial stability across the nation.
Minister Şimşek also noted that the government remains committed to implementing policies that enhance confidence in the Turkish lira, a crucial component of their strategy to sustain economic stability. The conclusion of the KKM scheme is seen as a concrete step forward in these overarching goals.