Türkiye has successfully concluded its withdrawal from the foreign exchange-protected deposit scheme known as KKM, as the total amount in these accounts has now dwindled to zero, as per official banking data. Initiated towards the end of 2021, the KKM program was designed to safeguard Turkish lira deposits held by individuals and businesses from the adverse effects of currency devaluation. However, in 2023, the Turkish government began to gradually phase out this scheme, aligning with a shift towards more traditional economic practices.
By 2025, the process of renewing KKM accounts had been completely halted, leading to a steady reduction in the account balance. The Banking Regulation and Supervision Agency’s data indicated that the account volumes had dropped to insignificant levels before finally reaching zero. This development signifies a notable transition in Türkiye’s economic strategy, as the government moves away from unconventional monetary tools.
Commenting on the completion of this transition, Treasury and Finance Minister Mehmet Şimşek emphasized that achieving the exit from the KKM program was a significant milestone in the country’s economic agenda. The government views this as a step forward in its commitment to reinforcing macro-financial stability and fostering greater confidence in the Turkish lira.
The introduction of the KKM scheme was a response to the challenges posed by a depreciating currency, aimed at providing a buffer for lira holders. As the authorities pivot towards more orthodox economic policies, the focus now is on consolidating financial stability and restoring trust in the local currency. This strategic shift reflects a broader aim to stabilize Türkiye’s economy and enhance its resilience against future financial uncertainties.