Türkiye has fully concluded its withdrawal from the foreign exchange-protected deposit program, known as KKM, as the account volume has now diminished to zero, based on freshly released official banking data. This program was originally launched towards the end of 2021 with the aim of safeguarding Turkish lira deposits held by individuals and businesses against potential losses due to currency devaluation. In 2023, the government began to gradually phase out this scheme, aligning with a broader transition to more traditional economic policies.
By 2025, the authorities had put a stop to renewals under the KKM scheme, which led to a gradual reduction in the remaining account volumes. The Banking Regulation and Supervision Agency reported that the balances had nearly dwindled to nothing before finally reaching zero. This development marks a significant milestone for the country’s current economic agenda.
Treasury and Finance Minister Mehmet Şimşek emphasized that the completion of this exit process represents a major goal of Türkiye’s economic strategy. He underscored the government’s continued commitment to policies that aim to bolster macro-financial stability and enhance trust in the Turkish lira.
The decision to phase out the KKM program reflects the government’s confidence in pursuing more conventional economic measures. While the scheme initially served as a buffer against currency depreciation, the shift indicates a strategic move towards strengthening the national currency without relying on extraordinary financial mechanisms.
Looking forward, Türkiye’s administration remains focused on reinforcing economic stability and fostering confidence in its financial system. The transition away from the KKM program is seen as a step towards achieving these objectives, as the country continues to navigate its path through evolving economic challenges and opportunities.