As of January 1, TL Convertible KKM Accounts Will Not Be Open

The Central Bank of the Republic of Turkey sent a letter to all banks. According to the information conveyed Monday, January 1, 2024 As of today, it will not be possible to open a new account at KKM with TL conversion. Renewal of currently open TL converted KKM accounts will not be possible. In the foreign currency conversion KKM application, new account openings and renewals will continue.

Alright What will happen to expired accounts? According to the same article, the maturity date and other transactions of TL converted exchange rate protected accounts will be evaluated and transactions will be carried out within the scope of the “Implementation Instruction on the Support of Deposit and Participation Accounts by the Central Bank of the Republic of Turkey against Exchange Rate Increases”.

Money in KKM decreased from 3.4 trillion TL to 2.65 trillion TL

In fact, the decision to be implemented with the article in question is not much of a surprise. Because with the “Decision on Amending the Decision on Supporting Deposit and Participation Accounts against Exchange Rate Increases”, the deadline for opening TL converted KKM accounts has already been changed. December 31, 2023It was extended to . Considering that the Minister of Treasury and Finance Mehmet Şimşek is also against KKM, it is expected that the period will not be extended again.

It can also be said that Mehmet Şimşek’s anti-KKM policy has started to yield results. According to the most recent data, the amount of deposits in KKM accounts has decreased from 3.4 trillion TL to 2.65 trillion TL since last August. CBRT’s issue regarding KKM reserve requirement and taking actions that will make other investments attractive, in addition to other regulations. It led to people taking their deposits out of KKM.