Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, known as KKM, as the volume of accounts dwindled to zero, according to recent data from the national banking sector. Introduced in late 2021, this scheme aimed to shield holders of Turkish lira deposits from losses due to currency depreciation. However, in a shift towards more traditional economic strategies in 2023, authorities began phasing it out.
The process of halting renewals under the KKM scheme was initiated in 2025, which led to a steady decline in account volumes. Reports from the Banking Regulation and Supervision Agency confirm that balances shrank significantly before eventually reaching zero. This marks a significant milestone in Türkiye’s economic agenda.
Mehmet Şimşek, the Treasury and Finance Minister, highlighted that the completion of this exit aligns with a primary goal of the nation’s economic program. This strategic move reflects Türkiye’s commitment to adopting policies that bolster macro-financial stability.
In the wake of this transition, the government remains focused on initiatives designed to enhance confidence in the Turkish lira. Efforts will continue to be directed towards fortifying the country’s financial framework and reinforcing overall economic stability.