Turkey extends FX-protected lira deposit scheme for another year

Turkey extended by a year a scheme it had adopted last year against a currency crisis which protects lira deposits from depreciation versus hard currencies.

The deadline for opening KKM (Currency protected deposit) accounts was amended to the end of 2023, a presidential decree published in Saturday's official gazette said.

Turkish budget payments into KKM stood at 9.1 billion lira ($500 million) in October.

No payment was made from the budget in November and December, since the start of the scheme, Turkey’s Finance Minister Nureddin Nebati said in a speech last week.

President Tayyip Erdogan's government introduced the state-backed scheme in December 2021 to stem a historic lira collapse triggered by interest rate cuts that Erdogan had sought.

The lira has still lost 29% versus the dollar this year but has held mostly stable since August.

Turkish budget payments into KKM stood at 9.3 billion lira ($500 million) in September.