Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, known as KKM, as the remaining account balances have diminished to zero, according to the latest data from the country’s banking sector. This scheme, initially rolled out in late 2021, aimed to shield Turkish lira deposit holders against losses stemming from currency depreciation. However, in 2023, a strategic pivot towards more orthodox economic policies led to the gradual wind-down of this program.
The cessation of renewals for the KKM scheme officially took place in 2025, setting the stage for a steady decrease in the volume of accounts. The Banking Regulation and Supervision Agency’s statistics underscored this decline, showing that balances had dwindled to negligible levels before eventually reaching a complete nullification. This marked an important milestone in Türkiye’s ongoing economic strategy.
Mehmet Şimşek, Türkiye’s Treasury and Finance Minister, highlighted that the culmination of the KKM exit process represents a significant achievement within the nation’s broader economic framework. The shift aligns with efforts to reinforce macro-financial stability and bolster confidence in the Turkish lira, an essential goal for the country’s economic health.
As Türkiye moves forward, the government remains committed to implementing policies that promote economic stability and restore trust in its national currency. The end of the FX-protected deposit scheme is a testament to the country’s strategic adjustments in economic policy, reflecting its dedication to adopting measures that ensure long-term financial stability.