The Turkish lira continues its record decline as the protection program is dismantled.

The Turkish lira continues its decline against the US dollar, reaching 39.9 liras per dollar, a 0.25% decrease. This decline comes amid the gradual reduction of the Key Covered Deposits (KKM) program, which Turkey began scaling back in 2023 as part of a shift toward conventional economic policies. According to official data, the KKM balance declined to 559.3 billion liras, after peaking at 3.4 trillion liras in August 2023, and now represents only 2.46% of total deposits. The program is expected to be fully terminated by the end of the year.