Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, known as KKM, after banking data confirmed that the accounts’ volume has diminished to zero. This scheme, which was introduced in late 2021, aimed to safeguard individuals and businesses with Turkish lira deposits against losses due to currency depreciation. In 2023, a strategic shift towards more conventional economic policies prompted authorities to begin phasing out the program.
By 2025, renewals under the KKM scheme had ceased, leading to a gradual decline in the remaining account volumes. Information from the Banking Regulation and Supervision Agency indicated that balances had dwindled to negligible levels before eventually reaching zero. This marks a significant milestone in Türkiye’s broader economic strategy.
Mehmet Şimşek, the Treasury and Finance Minister, remarked that the completion of the exit process from the KKM scheme represents a major achievement within the country’s economic program. The government’s focus remains on fostering macro-financial stability and bolstering confidence in the Turkish lira, he emphasized.
The KKM scheme had initially been a key component of Türkiye’s economic framework, designed to mitigate the impacts of currency volatility. However, the government’s recent efforts to adopt more traditional economic approaches have led to the scheme’s gradual dissolution, aligning with its broader objectives to enhance financial stability.
As Türkiye moves forward, the emphasis will remain on policies that support the national currency and economic resilience. The successful conclusion of the KKM scheme is seen as a crucial step towards achieving these goals, reflecting a commitment to strengthening the country’s economic foundations.