12.06.2025 10:40
The Minister of Treasury and Finance, Mehmet Şimşek, stated that the long-debated Currency Protected Deposit (KKM) application will soon come to an end. Minister Şimşek said, "In August 2023, KKM peaked at around 144 billion; today it has fallen below 15 billion dollars. We achieved this without disrupting the market. We will likely end this application soon."
The Minister of Treasury and Finance, Mehmet Şimşek, made important statements regarding the economy agenda during a live broadcast on NTV. Minister Şimşek announced that the Currency Protected Deposit (KKM) application will soon come to an end, stating, "In August 2023, KKM peaked at around 144 billion; today it has fallen below 15 billion dollars. We will likely end this application soon."
IMPORTANT STATEMENTS FROM MINISTER ŞİMŞEK
Highlights from Minister Şimşek's statements are as follows: "The program is generally yielding results within the framework I anticipated. The main goal of the program is to permanently reduce inflation to single digits. Inflation is decreasing and will continue to decrease.
Our other goal is a sustainable current account deficit; we have achieved the desired result there as well. The current account deficit has been below 1% of national income for a long time. The budget deficit is relatively high, but we are successfully addressing the aftermath of the earthquake. There is also a decrease in the budget deficit. We are implementing a serious program to significantly reduce the budget deficit, which is 4.9 this year.
In August 2023, KKM peaked at around 144 billion; today it has fallen below 15 billion dollars. We achieved this without disrupting the market. We will likely end this application soon.
"BUDGET DEFICIT IS DECREASING, CURRENT ACCOUNT DEFICIT HAS DECREASED"
Another important issue was to ensure reserve accumulation in the country. When we look at reserve revenues, there is a net increase of 90 billion dollars. There is also a gross increase of 55-60 billion dollars. The program is yielding results as anticipated; inflation is decreasing, the budget deficit is decreasing, the current account deficit has decreased, and we have reduced certain risks at a sustainable level, increasing the resilience of the economy.
This program has successfully navigated two major shocks, initially from domestic sources and later from external sources, that occurred in March-April. A program that has overcome two major shocks in succession means strengthening Turkey's economy.
"TURKEY'S NEED FOR EXTERNAL RESOURCES HAS DECREASED SIGNIFICANTLY"
Fundamentally, confidence in the program continues. Gross reserves have fallen from over 170 billion dollars to below 140 billion dollars. Reserves have significantly recovered. Turkey's need for external resources has decreased significantly.
Since the end of May 2023, there has been a decrease of 410 basis points in Turkey's risk premium. During that period, emerging markets experienced a decrease of 40 basis points. Turkey has performed 10 times better than emerging markets. We will consider the target inflation in the prices set by the public.
"WE HAVE NO CONCERNS ABOUT RESERVES"
In Turkey, the long-term reserve average from 2003 to 2023 was 0.9, while it dropped to 0.7 in May 2023. At the end of May, we are at 0.97. We have no concerns regarding reserve adequacy.