25.04.2025 17:50
The Minister of Treasury and Finance, Mehmet Şimşek, stated on his social media account that the decline in Currency Protected Deposits (KKM) continues uninterrupted, saying, "As of August 2023, the stock decreased by 2.7 trillion TL, falling to 707 billion TL. The share of KKM in total deposits dropped by 23 points to 3.3%."
The Minister of Treasury and Finance, Mehmet Şimşek, made a statement regarding the Currency Protected Deposit (KKM) on his social media account.
Mehmet Şimşek stated that the share of KKM in total deposits has decreased by 23 points and made the following remarks:
Thanks to our policies that strengthen macro-financial stability, the exit from KKM continues uninterrupted.
As of August 2023, the stock decreased by 2.7 trillion TL, falling to 707 billion TL. The share of KKM in total deposits decreased by 23 points to 3.3%.
WHAT IS KKM?
KKM stands for Currency Protected Deposit. It is a financial instrument that started to be implemented in Turkey in 2021.
Summary of KKM:
Currency Protected Deposit (KKM) is a system aimed at protecting deposit holders against fluctuations in exchange rates. If the increase in the exchange rate at the end of the term of deposits opened in TL exceeds the interest income, the difference is covered by the state.
Purpose:
To increase confidence in the TL
To reduce demand for foreign currency
To ensure exchange rate stability
How does it work?
Citizens open a TL account (usually with a term of 3, 6, or 12 months).
At the end of the term:
If the exchange rate has increased less than the interest income → interest is earned.
If the exchange rate has increased more than the interest income → the difference is paid by the Treasury.