The Final Bill for KKM: A $2.6$ Trillion Lira Legacy
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With the official conclusion of the Currency-Protected Deposit (KKM) system in August 2025, the final financial tally has emerged, revealing a staggering cost to the Turkish public. Between its inception in December 2021 and its termination, the program’s total expenditure has been calculated at 2 trillion 643 billion TL at current prices. This figure represents a monumental $59.1$ billion fiscal legacy, highlighting the price of the intervention used to stabilize the exchange rate over the last four years.
The Cost Split: Central Bank vs. Treasury
The financial burden of the KKM program was shared between two primary state institutions, with the Central Bank (TCMB) absorbing the vast majority of the impact.
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Central Bank (TCMB) Liability: A total of 1.3 trillion TL was transferred from TCMB resources. Adjusted to today’s exchange rates, this burden stands at 1.736 trillion TL.
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Treasury Liability: The National Treasury contributed 152 billion TL, which equates to 362 billion TL at current market values.
Yearly Expenditure: The 2023 Peak
The program’s costs were not uniform, with 2023 being the year of greatest financial strain due to high currency volatility.
| Year | Nominal Payment | Major Financial Impact |
| 2022 | ~165 Billion TL | Initial phase split between Treasury and TCMB. |
| 2023 | 893 Billion TL | The costliest year; TCMB paid 833B TL ($37.6B avg. rate). |
| 2024 | 240.2 Billion TL | Phase-out period begins following policy rate hikes. |
| 2025 | 166.5 Billion TL | Final payments made before the program’s August end. |
Record Central Bank Losses
The commitment to KKM has left a visible scar on the Central Bank’s balance sheets. The bank reported successive record losses during the program’s lifecycle:
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2023: 818.3 Billion TL loss
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2024: 700.4 Billion TL loss
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2025: 1 Trillion 65 Billion TL loss
While the program officially ended in August 2025, the final “real” fatura (bill) of $59.1$ billion serves as a historic benchmark for currency intervention costs. As the Turkish economy moves into the second quarter of 2026, the focus has shifted entirely to traditional monetary tools, leaving the KKM era as one of the most expensive experiments in the country’s financial history.
Source: halktv