The Foreign Exchange-Protected Deposit scheme, known as KKM, has come to a complete end after total balances in the accounts dropped to zero, according to weekly data from the Banking Regulation and Supervision Agency (BDDK).
Launched in December 2021 under former Finance Minister Nureddin Nebati, the mechanism aimed to curb rapid lira depreciation without raising interest rates, aligning with President Recep Tayyip Erdoğan's economic policy at the time.
The tool paid depositors interest matched to currency fluctuations, with costs initially split between the Treasury and the central bank before shifting entirely to the central bank in 2023.
Opponents argued it imposed a massive fiscal burden on state finances, with some financial analysts estimating the total economic damage to the country at more than $60 billion.
The central bank officially halted new account creation and renewals in August 2025, directing savers back toward standard lira deposits. With all remaining accounts now closed, a major chapter in Turkish financial policy has officially drawn to a close.
