Türkiye has successfully concluded its withdrawal from the FX-protected deposit scheme, known as KKM, as the volume of these accounts has now diminished completely to zero, according to the latest data from the banking sector. This financial mechanism, initially launched at the end of 2021, was designed to shield individuals and businesses holding Turkish lira deposits from the adverse effects of currency depreciation. However, in 2023, a policy shift towards more conventional economic strategies led authorities to begin phasing out the scheme.
The gradual discontinuation of the KKM scheme saw a significant turning point in 2025 when the government ceased the renewal of these deposits. Since then, the volume of remaining accounts has steadily decreased. Information from the Banking Regulation and Supervision Agency revealed that the balance of these accounts had dwindled to nearly inconsequential amounts before finally reaching zero.
Treasury and Finance Minister Mehmet Şimşek hailed the completion of this exit process as a vital milestone in Türkiye’s broader economic strategy. The closure of the FX-protected deposit scheme aligns with the country’s objectives of bolstering its financial framework.
Minister Şimşek emphasized that the government remains committed to policies that aim to reinforce macro-financial stability and bolster confidence in the Turkish lira. These efforts are part of Türkiye’s ongoing initiatives to stabilize and strengthen its economic environment.