Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, widely known as KKM, as the volume of accounts under this scheme has dwindled to zero, according to the latest official banking data. This scheme was initially implemented in late 2021 with the aim of safeguarding individuals and businesses holding Turkish lira deposits against potential losses from currency depreciation. However, a strategic shift towards more traditional economic policies in 2023 led authorities to gradually phase out the program.
The process of renewal for accounts under the KKM scheme was officially halted by 2025, and since then, the volume of such accounts has been in a steady decline. The Banking Regulation and Supervision Agency reported that the balance of these accounts had decreased to almost negligible amounts before eventually reaching zero. This milestone signifies the complete exit from the scheme, aligning with the government’s redefined economic strategies.
Mehmet Şimşek, Türkiye’s Treasury and Finance Minister, highlighted that this development marks a significant achievement in the country’s economic agenda. He emphasized that the conclusion of the KKM scheme’s exit process was a critical objective of Türkiye’s broader economic program. This transition is expected to reinforce the country’s commitment to strengthening macro-financial stability.
Furthermore, Minister Şimşek reiterated the government’s dedication to implementing policies that bolster confidence in the Turkish lira. These initiatives are part of a broader effort to enhance the stability and reliability of Türkiye’s financial system, ensuring that both local and international stakeholders have increased confidence in the nation’s economic direction.
As Türkiye moves forward, the government remains focused on maintaining macroeconomic stability while fostering a resilient economic environment. The phasing out of the FX-protected deposit scheme reflects Türkiye’s ongoing efforts to adapt and evolve its economic policies in response to both domestic and global financial landscapes.