Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, KKM, as the total account volume has dwindled to zero, according to the latest data from banking authorities. This scheme, initially launched in late 2021, aimed to shield Turkish lira deposit holders from the adverse effects of currency devaluation. However, a strategic shift towards more conventional economic policies in 2023 led the government to begin a gradual phase-out of the program.
By 2025, authorities ceased allowing renewals under the KKM scheme, resulting in a steady decline in account volumes. The Banking Regulation and Supervision Agency reported that balances had diminished significantly until they reached zero. This move is part of a broader effort by Türkiye to stabilize its economy and bolster confidence in the national currency.
Treasury and Finance Minister Mehmet Şimşek highlighted that the completion of the KKM exit process is a pivotal achievement in Türkiye’s economic strategy. He emphasized the importance of this step in aligning with the government’s broader goals of enhancing macro-financial stability.
As Türkiye transitions away from the KKM scheme, the government remains focused on implementing policies designed to strengthen the economy and increase trust in the Turkish lira. These measures are expected to play a critical role in maintaining economic stability in the country.