How to get the most savings when exchanging Japanese Yen? The truth behind a NT$50,000 difference of over a thousand yuan

The NT dollar to Japanese Yen exchange rate has reached 4.85, but did you know?
Using the same 50,000 NT dollars to exchange in different ways can result in a difference of over 1,500 yuan.

In 2025, travel to Japan and Yen investments are heating up again, but before heading to the bank, make sure to understand which exchange method is truly cost-effective. We compared the actual costs of four methods: bank counter cash exchange, online currency exchange, airport currency exchange, and foreign currency ATMs, to help you save on every bit of exchange fee.

Why is it worth exchanging for Yen? Hedging assets × Investment opportunities

Many think exchanging Yen is just for traveling in Japan, but Yen plays a more important role in Taiwanese financial planning.

Travel and consumption: In major Japanese cities, cash is still mainstream (credit card penetration only 60%), and shopping in Tokyo, Osaka, Hokkaido often requires cash payments. Also, purchasing Japanese drugstore products, clothing, anime merchandise often needs direct Yen payment. If planning to study or work in Japan, exchanging in advance can effectively hedge against sudden exchange rate fluctuations.

Financial market perspective: The Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s stable economy and low public debt make the Yen a safe haven during market turbulence. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, while global stock markets fell 10%, serving as a buffer in investment portfolios. For Taiwanese investors, holding Yen amid NT dollar depreciation adds a layer of hedging.

The Bank of Japan is on the verge of raising interest rates. Governor Ueda Kazuo’s hawkish comments have pushed market expectations of rate hikes to 80%, with a projected 0.25 basis point increase to 0.75% at the December 19 meeting (a 30-year high). The era of low interest rates is ending, but long-term Yen appreciation potential still exists.

Exchange cost comparison: Same 50,000 NT dollars, over a thousand yuan difference in 4 methods

Below are actual data from December 10, 2025, comparing costs to exchange 50,000 NT dollars to Yen:

Key takeaway: Online remittance is the most cost-saving but requires prior reservation; foreign currency ATMs are the most flexible, suitable for urgent needs; bank counter cash exchange is the most expensive and only recommended for airport emergencies.

Four major exchange channels explained

1. Bank counter cash exchange — the most traditional, highest cost

Carry NT dollars cash directly to a bank or airport counter to exchange for Yen cash. Banks use the “cash selling rate” (1-2% worse than spot rate), plus possible handling fees, making it the most expensive option.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/Yen (1 NT$ = 4.85 Yen), China Trust is 0.2065. Some banks like E.SUN, Yongfeng, Cathay United also charge 100-200 NT$ handling fee.

Cost to exchange 50,000 NT$: Loss of 1,500-2,000 NT$.

Suitable for: Those unfamiliar with online operations, urgent last-minute needs (like at the airport), or small amounts (under 1,000 NT$).

Advantages: Safe, denominations available (1,000/5,000/10,000 Yen), staff assistance.
Disadvantages: Worst exchange rate, limited business hours, extra handling fees.

2. Online remittance + foreign currency ATM withdrawal — 24-hour flexible option

Use bank app or online banking to convert NT$ into Yen and deposit into a foreign currency account (using spot rate, about 1% better than cash). If cash is needed, withdraw at bank foreign currency ATMs, with only 5 NT cross-bank fee.

Yongfeng Bank’s foreign currency ATMs support direct withdrawal of Yen from NT dollar accounts, with a daily limit of 150,000 NT$, no extra fee. E.SUN also offers similar service.

Cost to exchange 50,000 NT$: Loss of 500-1,000 NT$.

This method is suitable for observing exchange rate trends, entering in batches at low points (e.g., when NT$/Yen is below 4.80), averaging costs. Note that ATM denominations are fixed (1,000/5,000/10,000 Yen), and during peak times cash may run out, so plan ahead.

Suitable for: Experienced forex users, those with foreign currency accounts, investors entering in batches.
Advantages: 24/7 operation, better rates, low cross-bank fees, flexible batching.
Disadvantages: Need to open a foreign currency account first, limited ATM locations (~200 nationwide), cash may be unavailable during peak times.

3. Online remittance + counter pickup — the most cost-effective plan

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After online remittance, bring ID and transaction notification to the branch for pickup. Taiwan Bank’s “Easy Purchase” service has no handling fee (pay via TaiwanPay for only 10 NT$), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours, ideal for pre-departure planning. Reservation takes 1-3 days.

Cost to exchange 50,000 NT$: Loss of 300-800 NT$, most economical.

Suitable for: Planned travelers, pre-arranged before departure, those wanting to pick up cash at the airport.
Advantages: Best rates, often no handling fee, can specify airport pickup, lowest cost.
Disadvantages: Need to reserve in advance, pickup during bank hours only, branches cannot be changed on short notice.

4. Foreign currency ATM — the most convenient temporary solution

Use chip-enabled bank card to withdraw Yen cash at foreign currency ATMs, available 24/7. From NT dollar account, only 5 NT$ cross-bank fee, no extra exchange fee. Single withdrawal limit varies by bank (e.g., China Trust 120,000 NT$, Taishin 150,000 NT$, E.SUN 150,000 NT$).

Note: From October 2025, many banks will strengthen anti-fraud measures, reducing third-party digital account daily limit to 100,000 NT$. Japan ATM withdrawal services will be adjusted at year-end, requiring international cards (Mastercard/Cirrus).

Cost to exchange 50,000 NT$: Loss of 800-1,200 NT$.

Suitable for: No time to visit banks, need urgent withdrawal, not pre-planning for travel.
Advantages: Instant 24/7, high flexibility, low cross-bank fee, no extra exchange fee.
Disadvantages: Limited locations (~200 nationwide), fixed denominations, cash may sell out during peak times.

Is it really cost-effective to exchange Yen now?

Yes, but with batching.

On December 10, 2025, NT$/Yen is 4.85, up from 4.46 at the start of the year, an appreciation of about 8.7%. The exchange rate difference alone has brought significant gains to Taiwanese investors. In the second half of 2025, Taiwan’s currency exchange demand increased by 25%, mainly due to travel recovery and hedging needs.

Currently, Yen exchange rates fluctuate. The US easing cycle supports Yen, but expectations of BOJ rate hikes have pushed Japanese government bond yields to a 17-year high of 1.93%. USD/JPY has fallen from 160 at the start of the year to 154.58, possibly rebounding to 155 short-term, with medium-long term forecasts below 150.

Investment advice: Enter in batches, avoid all-in exchange. Yen has hedging function, but short-term risks include 2-5% oscillation during arbitrage closing. It’s recommended to enter 3-5 times per month to lower average costs.

Capital allocation after exchanging Yen

After exchanging Yen, don’t let the money sit idle. Consider these 4 value-added options:

Yen fixed deposit — Stable, open foreign currency accounts at E.SUN/Taiwan Bank, minimum 10,000 Yen, annual interest 1.5-1.8%, suitable for 1-3 year principal protection.

Yen insurance policy — Medium-term holding, Cathay/Fubon savings insurance with guaranteed 2-3% interest, with protection features, suitable for risk-averse investors.

Yen ETFs (00675U, 00703) — Growth-oriented, Yuanta 00675U tracks Yen index, management fee 0.4%, can buy fractional shares via broker app, suitable for medium-long term appreciation.

Forex trading — USD/JPY, EUR/JPY pairs, operate on forex platforms, long/short, 24-hour trading, small capital needed, suitable for experienced swing traders.

Quick FAQs

Q. How much is the difference between cash rate and spot rate?

Cash rate (Cash Rate) is for physical cash buying/selling, usually 1-2% worse than market rate, with immediate delivery. Spot rate (Spot Rate) is used for electronic transfers, T+2 settlement, closer to international market price. For 50,000 NT$, cash rate is about 200-300 Yen worse than spot rate.

Q. How much Yen can 10,000 NT$ buy?

Calculation: Yen amount = NT$ amount × current rate. Using Taiwan Bank’s cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 Yen; with spot rate 4.87, ≈ 48,700 Yen, difference about 200 Yen (~40 NT$).

Q. What to bring for counter exchange?

Taiwanese: ID + passport; foreigners: passport + residence permit. If pre-booked online, also bring transaction notification. Under 20 years old need parent’s consent and ID; large amounts (>100,000 NT$) may require source of funds declaration.

Q. Are there limits for foreign currency ATM withdrawals?

Starting October 2025, banks will adjust limits: China Trust (equivalent NT$ 120,000/day), other banks like Taishin and E.SUN (NT$ 150,000/day). Digital accounts may reduce to NT$ 100,000/day; plan withdrawals accordingly or use your own bank card to avoid cross-bank fees.

Summary: Your Yen exchange decision tree

Yen has surpassed “travel pocket money” status, becoming an asset with hedging and investment value.

For travelers: Use online remittance + airport pickup, reserve in advance, withdraw in one go for cost savings and safety.

For investors: Use foreign currency ATMs for batch withdrawals, combined with Yen fixed deposits or ETFs, to hedge against NT$ depreciation and stock market risks.

For urgent needs: Foreign currency ATM is the only 24-hour option, slightly higher cost but flexible.

Follow the two principles of “batch exchange” + “not lying flat after exchange” — minimize costs and add a layer of protection during market turbulence. Before next exchange, compare options; the saved money might just be enough for you to enjoy another Wagyu meal in Tokyo.