Türkiye has officially ended its FX-protected deposit scheme, known as KKM, after the program’s account volumes reached zero, as indicated by recent banking data. Initially introduced at the end of 2021, the scheme aimed to safeguard Turkish lira deposits held by individuals and businesses from the adverse effects of currency depreciation. However, in 2023, the Turkish government started a gradual phase-out of the program in favor of more traditional economic policies.
In 2025, authorities decided to stop renewals under the KKM scheme, leading to a progressive decline in account volumes. According to data from the Banking Regulation and Supervision Agency, the balance had already dwindled to negligible levels before ultimately reaching zero. This development marks a significant milestone in Türkiye’s broader economic strategy.
Treasury and Finance Minister Mehmet Şimşek highlighted that completing the exit from the KKM scheme is a key achievement within the country’s economic framework. He emphasized that the government remains committed to implementing measures aimed at bolstering macro-financial stability and enhancing confidence in the Turkish lira.
The termination of the KKM scheme aligns with Türkiye’s ongoing efforts to stabilize its economy and reinforce the national currency. By moving away from such protective mechanisms, the authorities aim to foster a more sustainable financial environment while encouraging public confidence in the lira.