Türkiye’s FX-Protected Deposit Balances Continue to Shrink Sharply in April

The stock balance of foreign exchange and gold-convertible FX-protected deposit accounts (DDKKM) in Türkiye fell by $2.8 billion in April, marking another month of steep declines, according to data from the Central Bank of the Republic of Türkiye (CBRT).

DDKKM Stock Drops Below $19 Billion

As of end-April 2025, the total DDKKM stock balance dropped to $18.8 billion, down from $21.6 billion in March. The CBRT data reflects a sustained withdrawal trend as depositors move away from these once-popular savings tools.

The decline over the past 12 months now totals $54.6 billion, while the cumulative drop from the peak of $97.3 billion in July 2023 has reached a staggering $78.5 billion.

Real and Corporate FX-Protected Accounts Both Declining

• Real person DDKKM balances fell from $18.6 billion to $17.0 billion

• Legal entity DDKKM balances dropped from $3.0 billion to $1.8 billion

The figures confirm a broad-based de-dollarization trend within the FX-protected deposit scheme, which had been launched to stabilize the Turkish lira and attract savings amid currency volatility.

Shift Toward Lira-Based Instruments Accelerates

The steady outflow from DDKKM accounts suggests that confidence in lira-based instruments is gradually being restored, especially as the CBRT maintains a tight monetary stance to combat inflation and currency depreciation. The broader Kur Korumalı Mevduat (KKM) program, originally designed to curb dollarization, is now being phased out in favor of more market-based savings products.

Analysts view the trend as a positive signal for monetary policy normalization and a potential turning point in currency management strategies.