21.12.2025 12:00
Foreign currency deposits in banks have recorded an increase after a 4-year hiatus. Due to the KKM application and high interest rate policies, the volume of foreign currency deposits, which declined after 2021, has started to rise again as of 2025.
The foreign currency deposit accounts in banks turned upward again in 2025. Due to the impact of the currency-protected deposit (KKM) application and the high interest rate environment, the volume of foreign currency deposits of domestic residents, which had been declining for three years after 2021, recorded an increase this year.
FOREIGN CURRENCY DEPOSIT VOLUME INCREASED BY 51.2 BILLION DOLLARS
According to the data from the Central Bank of the Republic of Turkey (CBRT), the volume of foreign currency deposits increased by 51.2 billion dollars in the period from January 1 to December 12, 2025. When adjusted for parity effects, the increase was realized as 18.4 billion dollars.
Looking at previous years, the volume of foreign currency deposits in banks increased by 32.6 billion dollars in 2019, 42 billion dollars in 2020, and 1.4 billion dollars in 2021. In 2022, due to the effects of KKM and other regulations, there was an increase of 45.1 billion dollars, in 2023, with KKM and high interest policies, an increase of 15.8 billion dollars, and in 2024, a decrease of 12.9 billion dollars due to high interest effects. According to data adjusted for gold and euro/dollar parity, foreign currency deposits increased during the 2019-2021 period, while a significant decline was recorded in 2022, 2023, and 2024.
THE TERMINATION OF KKM APPLICATION HAD AN IMPACT
It is evaluated that multiple factors were effective in the renewed increase in 2025. The gradual termination of the KKM application, interest rate cuts, the inability to achieve expected returns in the stock market, and the increase in political and geopolitical risks were among the main factors that increased the orientation towards foreign currency deposits. In addition, the historic rise in gold prices brought about a record nominal increase in foreign currency deposits.
Since the beginning of the year, the dollar exchange rate has increased by 21%, the euro exchange rate by 37%, the Borsa Istanbul BIST 100 index by 14%, and the gram gold by 100%. While the increases in the dollar exchange rate and the BIST 100 index remained below official inflation, the rise in euro and gram gold occurred above inflation.