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 banking authorities. Originally launched in late 2021, the KKM scheme was designed to shield individuals and businesses holding Turkish lira deposits from the adverse effects of currency devaluation. However, in 2023, the government shifted towards more traditional economic policies, prompting a gradual phase-out of the scheme.
By 2025, renewals under the KKM scheme were discontinued, leading to a consistent decrease in the remaining account volumes. Data from the Banking Regulation and Supervision Agency indicated that before reaching zero, the balance had already decreased to an almost negligible level. This development marks a significant milestone in Türkiye’s economic strategy, as the country moves away from the scheme that had been a temporary measure during times of financial instability.
Mehmet Şimşek, Türkiye’s Treasury and Finance Minister, highlighted that the completion of the KKM exit process represents a key achievement in the nation’s broader economic agenda. The government is now focused on implementing policies that aim to enhance macro-financial stability and bolster confidence in the Turkish lira, which is a central component of their economic objectives.
The discontinuation of the KKM scheme aligns with Türkiye’s commitment to reestablishing economic norms and fostering a more stable financial environment. The authorities are optimistic that these efforts will help strengthen the country’s financial framework and restore trust in its currency, facilitating sustainable economic growth.
By concluding the KKM scheme, Türkiye demonstrates its dedication to adjusting its economic strategies in response to evolving financial landscapes. The government remains steadfast in its pursuit of policies that support economic resilience and stability, ensuring a robust foundation for future economic endeavors.