Türkiye has officially concluded its participation in the foreign exchange-protected deposit scheme, with account volumes dropping to zero, according to the latest banking data. This scheme, introduced in late 2021, was designed to safeguard Turkish lira deposits for individuals and businesses against losses from currency depreciation. However, in 2023, the government began phasing out the scheme, aligning with a shift toward more traditional economic policies.
By 2025, the renewal of accounts within the scheme, known as KKM, was halted, leading to a steady decline in the account volumes. Data from the Banking Regulation and Supervision Agency confirmed that balances had dwindled to negligible levels before reaching a complete phase-out.
Treasury and Finance Minister Mehmet Şimşek highlighted that the completion of the exit from the KKM scheme represents a significant milestone in Türkiye’s economic agenda. He emphasized that the government remains committed to pursuing policies that enhance macro-financial stability and bolster confidence in the Turkish lira.
The cessation of the FX-protected deposit scheme marks an essential step for the Turkish government as it continues to implement strategies aimed at strengthening the national economy. By transitioning away from this scheme, Türkiye is focusing on stabilizing its financial landscape and reinforcing trust in its national currency.