The Turkish central bank announced early Saturday it would end the opening and renewal of foreign-exchange-protected accounts, part of the so-called KKM, as of Aug. 23, thus exiting the program launched in 2021.
"The Central Bank of the Republic of Türkiye (CBRT) has decided to terminate the opening and renewal of KKM accounts (excluding YUVAM accounts), effective Aug. 23, 2025," the bank said in a written statement.
"Accounts opened prior to this date will remain valid until their maturity, following which the relevant communiqués will be repealed," it added.
With the termination of KKM accounts, the total target for KKM accounts’ transition to the Turkish lira and renewals has been abolished, it further said.
The central bank also said that following the termination, it has revised its regulations on reserve requirement remuneration and commission practices tied to the scheme.
Turkish officials previously said the KKM scheme, introduced in late 2021, would be terminated by the end of 2025.
Under the scheme, individuals and businesses could deposit lira into special accounts that were protected against exchange rate losses. The value of deposits covered by the scheme has shrunk from a peak of some $140 billion to just $11 billion.
Economists have been anticipating the exit from the scheme, as the weekly banking data has been showing a continued decline in the volume of these accounts.
Following the May 2023 elections, authorities adopted more conventional policies, led by monetary tightening, primarily aimed at curbing stubborn inflation. Shortly after, they also announced plans to abolish the KKM scheme.
Treasury and Finance Minister Mehmet Şimşek stated that with the end of the practice, they have "achieved another one of our program's important goals," referring to the government's economic program aimed at lowering inflation.
"The Currency-Protected Deposit (KKM) practice has ended. No new accounts will be opened, and existing accounts will not be renewed," he said in a post on X.
"The KKM balance, which reached a peak of TL 3.4 trillion ($143 billion), has been steadily decreasing for two years, thanks to the program we implemented, dropping to TL 441 billion ($11 billion) as of Aug. 15," he added.
"With the termination of KKM, which was a significant contingent liability, financial stability will be further strengthened," the minister noted.
In a separate blog post published on Aug. 23, the CBRT said that "over the last two years, KKM balance has gradually declined."
"As of Aug. 19, 2025, the KKM share declined to 1.8%, while the Turkish lira deposit share rose above 60%," it noted.
"The KKM accounts due in the upcoming period will be close to the balance decline in the previous period. As such, the necessary conditions to discontinue the scheme appear to be in place," it added.
