The Japanese Yen exchange rate has surged to 4.85. What is the most cost-effective way to exchange Japanese Yen now?

In December 2025, the NT dollar to Japanese Yen surged to a level of 4.85, appreciating by 8.7% from 4.46 at the beginning of the year. This significant increase has prompted many to seriously consider exchanging for Yen. But the question is—what’s the most cost-effective way to do it?

Many believe that simply going to the bank counter to exchange is fine, but they don’t realize that the exchange rate difference alone can cost you hundreds of dollars more. For the same amount of 50,000 NT dollars, using different methods to exchange can result in a cost difference of over 1,000 NT dollars. We have compiled the latest four major currency exchange channels, showing you the actual rates.

Why exchange Yen now?

When it comes to foreign currencies, most Taiwanese people’s first thought is Yen. The reason isn’t just for traveling to Japan.

On a daily basis, travel, shopping services, and studying abroad in Japan all require cash Yen. Many Japanese stores still only accept cash, and credit card penetration is only about 60%. But from a financial perspective, Yen’s attractiveness is even greater—it is one of the world’s three major safe-haven currencies (along with USD and Swiss Franc). When stock markets fluctuate, funds tend to flow into Yen for safety. During the Russia-Ukraine conflict in 2022, Yen appreciated by 8% in a week, successfully buffering stock market declines.

Interestingly, the Bank of Japan has just started raising interest rates. Governor Ueda Kazuo’s recent hawkish comments have driven market expectations, with a rate hike to 0.75% expected at the December 19 meeting (a 30-year high). This indicates that the interest rate differential advantage of Yen is gradually emerging, which is positive for long-term holders.

A comparison of 4 ways to exchange Yen

The current question is: which method should you use?

Method 1: Bank counter exchange—most traditional but highest cost

Go directly to a bank or airport counter to exchange cash Yen. It sounds simple, but using the “cash selling rate” is about 1-2% worse than the spot rate, plus some banks charge handling fees, making it the most expensive overall.

For example, as of December 10, 2025, Taiwan Bank’s cash selling rate is 0.2060 TWD/Yen (equivalent to 1 TWD = 4.85 Yen). E.SUN Bank charges an additional 100 NT dollars per transaction, Cathay United Bank even charges 200 NT dollars. Exchanging 50,000 NT dollars this way could result in a loss of 1,500–2,000 NT dollars.

Advantages: Safe, full denominations, assistance from staff.
Disadvantages: Rate difference, limited operating hours, possible handling fees.
Suitable for: People unfamiliar with online methods or needing small, urgent exchanges.

Method 2: Online currency exchange + foreign currency account—high flexibility, suitable for investors

Use bank apps or online banking to convert NT dollars into Yen at the “spot selling rate” (about 1% better than cash selling rate), and deposit into a foreign currency account. If cash is needed, withdraw Yen via ATM or at counters.

The advantage is that you can buy in installments and observe exchange rate trends. When NT to Yen drops below 4.80, buy in parts to average the cost. Exchanging 50,000 NT dollars this way results in only a 500–1,000 NT dollar loss.

Advantages: 24-hour operation, better rates, dollar-cost averaging.
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply.
Suitable for: Forex-savvy investors or those planning to buy Yen deposits simultaneously.

Method 3: Online currency settlement + airport pickup—best pre-departure reservation method

No need to open a foreign currency account. Simply fill in the amount, currency, pickup branch, and date on the bank’s official website. Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (pay with Taiwan Pay, only 10 NT dollars), with about 0.5% rate advantage, and you can reserve pickup at Taoyuan Airport branches (two locations, open 24 hours).

Ideal for well-planned travelers—no need to visit the bank, pick up directly at the airport, with only 300–800 NT dollars in loss.

Advantages: Better rates, often no handling fees, specify airport pickup.
Disadvantages: Need 1–3 days to reserve, pickup limited to business hours.
Suitable for: Travelers planning trips abroad.

Method 4: Foreign currency ATM withdrawal—most immediate, most flexible

Use a chip-enabled financial card at foreign currency ATMs to withdraw cash Yen, available 24/7. Deducted directly from your NT account, cross-bank fee as low as 5 NT dollars, with single withdrawal limits of about 120,000–150,000 NT dollars equivalent (varies by bank). E.SUN Bank’s foreign currency ATM allows withdrawal from NT accounts without currency exchange fees.

The only downside is limited ATM locations (about 200 nationwide), and cash may run out during peak times. Withdrawing 50,000 NT dollars this way results in a loss of 800–1,200 NT dollars.

Advantages: Instant, 24/7, high flexibility, low cross-bank fees.
Disadvantages: Few locations, fixed denominations, possible cash shortages at peak times.
Suitable for: Those with no time to visit banks or needing urgent cash.

Cost comparison table

After exchanging Yen, let your money work for you

Once you’ve exchanged Yen, consider these four ways to generate returns:

Yen deposits: The safest. E.SUN, Taiwan Bank offer annual interest rates of 1.5–1.8%, starting from 10,000 Yen deposits.
Yen insurance policies: Medium-term options. Cathay Life, Fubon Life offer savings insurance with guaranteed interest rates of 2–3%.
Yen ETFs: Growth-oriented. Yuanta 00675U tracks Yen index, with an annual management fee of 0.4%, and allows fractional investing.
Forex trading: Swing trading. USD/JPY, EUR/JPY are volatile, suitable for experienced traders.

While BOJ rate hikes are positive, global arbitrage unwinding or geopolitical conflicts could weaken Yen. Short-term fluctuations of 2–5% are possible; it’s advisable to buy in installments rather than all at once.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical banknotes, usually 1–2% worse than the spot rate. The spot rate is the market rate between banks, closer to international prices.

Q: How many Yen for 10,000 NT dollars?
At cash selling rate 4.85, about 48,500 Yen; at spot rate 4.87, about 48,700 Yen. Difference of 200 Yen (~40 NT dollars).

Q: What to bring for in-person currency exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. Under 20 needs parental accompaniment. Large amounts over 100,000 NT dollars may require source of funds declaration. Online reservations require transaction notices.

Q: Limit for foreign currency ATM withdrawals?
From October 2025, banks adjusted limits. CTBC: about 120,000 NT dollars/day; Taishin: 150,000 NT dollars/day; E.SUN: 150,000 NT dollars/day (including credit card). Using your own bank card is recommended to avoid cross-bank fees.

Summary: Time your moves, exchange in installments

Yen is no longer just pocket money for travel but an asset with hedging and investment value. The current rate of 4.85, up 8.7% from the start of the year, is a good level.

For beginners, the simplest approach is “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM withdrawal”—lowest cost, smooth process. After exchanging, don’t let the money sit idle—invest in deposits, ETFs, or try swing trading. This way, you can enjoy travel convenience and add a layer of protection against Taiwan stock market volatility.

The key is: exchange in installments and allocate after conversion, to minimize costs and maximize returns.