Türkiye has successfully concluded its withdrawal from the foreign exchange-protected deposit scheme, known as KKM, as the volume of these accounts has officially reached zero, according to recent banking data. This scheme, which was launched in late 2021, aimed to safeguard individuals and businesses holding Turkish lira from losses due to currency depreciation. However, a strategic shift toward more conventional economic policies in 2023 prompted authorities to gradually phase out the program.
The discontinuation process began in earnest in 2025 when renewals under the KKM scheme were halted. Since then, the volume of accounts steadily decreased until it reached the point of complete cessation. Data from the Banking Regulation and Supervision Agency highlighted this progression, revealing a steady decline in balances until they became negligible and eventually zero.
This development marks a significant milestone in Türkiye’s economic strategy, as noted by Treasury and Finance Minister Mehmet Şimşek. He emphasized that the completion of the exit process from the KKM scheme was a critical objective of the country’s broader economic program. The move is seen as a step towards reinforcing macro-financial stability within the nation.
Looking ahead, the Turkish government remains committed to implementing policies that aim to enhance confidence in the Turkish lira and strengthen macro-financial stability. The transition away from the KKM scheme underscores Türkiye’s focus on fostering a more stable economic environment through conventional policy measures. This approach is designed to bolster faith in the national currency and promote sustainable economic growth.