Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, commonly referred to as KKM, as recent banking data reveals that the scheme’s account volume has dwindled to zero. This initiative was initially launched towards the end of 2021 with the aim of safeguarding the Turkish lira deposits of individuals and businesses against currency depreciation. However, a strategic pivot towards more traditional economic policies in 2023 prompted officials to start phasing out the scheme gradually.
The transition away from the KKM scheme saw the cessation of renewals in 2025, which led to a steady decline in the remaining account volumes. Reports from the Banking Regulation and Supervision Agency highlighted that the balance had already reached minimal levels before eventually hitting zero. This development aligns with Türkiye’s broader economic strategy as outlined by the nation’s Treasury and Finance Minister Mehmet Şimşek.
Minister Şimşek emphasized that finalizing the exit from the FX-protected deposit scheme represented a significant milestone within Türkiye’s economic agenda. The government has committed to continuing its efforts to bolster macro-financial stability and to enhance trust in the Turkish lira, reflecting an ongoing dedication to economic reform and resilience.
The KKM program’s introduction was initially seen as a protective measure against potential financial instability caused by the volatile exchange rates affecting the Turkish currency. As the country sought to stabilize its economy, the shift in policy direction was aimed at fostering a more sustainable economic environment through conventional practices.
Türkiye’s decision to phase out the KKM scheme and focus on strengthening the lira through traditional methodologies underscores a strategic transition in its economic policy. The government remains focused on building a robust financial system that instills confidence among investors and citizens alike, ensuring the long-term stability of the nation’s economy.