Has KKM formula of government solved foreign exchange accounts to end dollar pressure on economy?

The money converted into lira under the “exchange rate protected deposit” application (KKM), which the government has wrapped up to break the dollarization, is just over $ 20 billion. But the share of this figure in total is rather small. Therefore as expressed by experts, it is not possible at this stage to say that KKM has prevented the depreciation of TL.

The KKM which was abolished in the past years on the grounds that it caused great damage to the economy seems to have ended the rise in foreign currency deposits of domestic residents, in the first place. The total decrease in foreign currency (FX) deposits after launching of KKM is $ 21 billion. The record for foreign currency deposits was broken in December, when it exceeded $ 238.9 billion.

Deposit dollarization is currently just under 60 percent

According to the data of the Central Bank, which includes the last week of March 11, the total deposits in banks is 6 trillion 125 billion Turkish liras. Of this amount, 3 trillion 457 billion liras is in foreign currency and 2 trillion 445 billion is in TL. Deposit dollarization is currently just under 60 percent. The rate had reached up to 70 percent before the CCM.

Source: diken.com.tr/kkm-doviz-hesaplarini-ne-kadar-cozdu-kur-baskisi-bitti-mi/