The Central Bank has removed the currency-protected support.

The support for foreign currency and TL accounts provided to foreign currency liable firms has been removed. The communiqué regarding the abolition of the communiqué on the support to be provided for the deposits and participation accounts in foreign currency or Turkish lira of legal entities with foreign currency liabilities by the Central Bank of the Republic of Turkey (CBRT) has been published in the Official Gazette.

Accordingly, the communiqué regulating the procedures and principles regarding the support to be provided for the foreign currency conversion or deposits and participation fund accounts in Turkish lira of domestic legal entities with foreign currency liabilities, published in the Official Gazette dated March 30, 2023, and numbered 32148, has been abolished.

WHEN DID KKM START TO BE IMPLEMENTED?

Currency Protected Deposit (KKM) was announced on December 20, 2021, when Nureddin Nebati was the Minister of Treasury and Finance. In this system, if individuals convert their foreign currency deposits or transfer their existing TL deposits to KKM accounts with various maturities, the TL deposits are fixed to the foreign currency at the CBRT exchange rate as of the account opening date.

Initially, the exchange rate differences of TL deposits were covered by the Treasury from the budget, while the exchange rate differences of foreign currency protected accounts coming from foreign currency deposits were paid by the Central Bank. Later, with the law that was enacted, it was stipulated that both liabilities would be covered by the Central Bank.