Türkiye has officially concluded its withdrawal from the FX-protected deposit scheme, known as KKM, as the volume of these accounts has dwindled to zero, according to recent data from the banking sector. Initially launched at the end of 2021, the scheme was designed to shield holders of Turkish lira deposits—both individuals and businesses—from potential losses due to currency depreciation. However, by 2023, the government began a gradual phase-out of the scheme, shifting towards more traditional economic strategies.
The gradual cessation of the KKM scheme culminated in 2025 when renewals were stopped, leading to a steady reduction in the account volume. Official figures from the Banking Regulation and Supervision Agency indicated that the balances had already decreased to minimal levels before finally reaching zero. This move aligns with Türkiye’s broader economic objectives, as stated by Treasury and Finance Minister Mehmet Şimşek, who regarded the completion as a significant milestone in the country’s economic agenda.
Introduced during a period of economic uncertainty, the KKM scheme served as a temporary measure to stabilize the national currency by offering a protective mechanism against rapid depreciation. As economic conditions evolved, authorities opted to phase out such emergency measures in favor of more conventional fiscal policies. The decision to end the scheme underscores a renewed focus on sustainable economic practices aimed at bolstering macro-financial stability.
Minister Şimşek emphasized that Türkiye remains committed to policies that enhance confidence in the Turkish lira. The government’s ongoing efforts are geared towards reinforcing the overall economic landscape, ensuring that the national currency remains a stable and reliable asset for investors and the public alike. This strategic pivot aims to fortify financial stability while fostering a resilient economic environment in the face of global challenges.