Turkey has ended its plan to protect deposits from currency fluctuations, a program that cost around $60 billion, marking another step away from unconventional economic policies that triggered a lira crisis several years ago.
اضافة اعلان
The Central Bank of Turkey announced that it would stop opening and renewing accounts under the currency-protected deposit scheme (KKM) as of August 23, adding that accounts opened before this date will remain valid until maturity.
The central bank also stated that it has reviewed its regulations regarding reserve requirement incentives and related commission practices following the termination of the plan.
Turkish officials had previously indicated that the KKM plan, introduced in late 2021, would be phased out by the end of 2025.
Under the scheme, individuals and companies could deposit lira in special accounts protected against exchange-rate losses. The lira lost 44% of its value against the U.S. dollar in 2021, 29% in 2022, 37% in 2023, and 16% last year.
The value of deposits covered by the program fell from a peak of $140 billion to just $11 billion.
—Reuters
