JPY to TWD exchange rate hits 4.85! An investor's guide to timing currency exchange and optimizing costs

Exchange Rate Status: Why Now Is the Window to Exchange for Yen?

As of December 10, 2025, the NT$ to JPY exchange rate has reached 4.85, meaning 1 NT$ can be exchanged for 4.85 yen. Compared to 4.46 at the beginning of the year, the yen has appreciated by 8.7% against the NT$, hitting a yearly high. Against the backdrop of increasing global economic uncertainty, the yen, as one of the three major safe-haven currencies, reflects international capital’s pursuit of safe assets.

According to market data, Taiwan’s foreign exchange demand in the second half of the year increased by 25% compared to the same period last year. The main driving factors are: first, the recovery of Japanese tourism (tour payments still mainly in cash, with credit card penetration at only 60%), and second, investors’ increased demand for risk hedging.

Fundamental Factors Behind Yen Appreciation

The key factor is the policy shift by the Bank of Japan (BOJ). Recently, BOJ Governor Ueda Kazuo made hawkish comments, with market expectations of interest rate hikes reaching 80%. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 30-year high). Meanwhile, Japanese government bond yields have hit 1.93%, a 17-year high. In contrast, the USD/JPY exchange rate has fallen from a high of 160 at the start of the year to 154.58. In the short term, it may test the 155 level, but medium to long-term forecasts suggest it will fall below 150.

For NT$ holders, this is a rare opportunity to allocate funds into yen—enjoying exchange rate gains while hedging against Taiwan stock market volatility.

In-Depth Analysis of the Five Major Currency Exchange Channels

Exchanging yen may seem simple, but the costs across different channels can differ by up to 2,000 NT$ (based on 50,000 NT$). Below is a comprehensive comparison of each method.

Method 1: Bank Counter Cash Exchange — Safe but Most Expensive

Carry NT$ cash directly to a bank branch or airport counter to exchange for yen cash. Banks use the “cash selling rate,” which is usually 1-2% worse than the spot rate, and most banks charge additional handling fees.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 NT$/JPY (inverse: approximately 4.85 JPY/NT$). Mega International Bank’s cash rate was 0.2062, slightly better. Some banks like E.SUN, E.SUN, and Cathay United Bank add an extra 100-200 NT$ per transaction.

Actual Cost: Exchanging 50,000 NT$ at a bank counter (e.g., Taiwan Bank) yields about 242,500 yen, with a cost loss of 1,500-2,000 NT$.

Suitable for: Urgent small amounts at the airport, under NT$30,000.

Method 2: Online Bank Transfer + Counter Pickup — A Middle Ground

Use bank app or online platform to convert currency at the “spot selling rate” (about 1% better than cash rate). After completing the transfer, pick up yen cash at a counter or ATM. A handling fee (usually starting at NT$100) applies during pickup.

For example, E.SUN Bank’s online exchange rate is about 4.87 JPY/NT$, then pick up at the counter involves paying the difference between spot and cash rates, with a minimum NT$100 fee. Fubon Bank offers foreign currency ATM withdrawals, allowing up to NT$150,000 per day without additional fees.

Actual Cost: Converting NT$50,000 via this method yields about 243,500 yen, with a cost loss of NT$500-1,000.

Suitable for: Investors with foreign exchange experience planning to deposit yen into fixed deposits or hold long-term.

Method 3: Online Appointment for Currency Exchange, Pick Up at Branch or Airport — Planning-Oriented

No need to open a foreign currency account in advance. Fill out currency, amount, pickup location, and date on the bank’s website. After online exchange, present ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” platform offers this service, with a NT$10 fee via TaiwanPay and about 0.5% better exchange rate.

Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours, ideal for pickup before departure. Mega International Bank also offers similar services.

Actual Cost: Exchanging NT$50,000 this way yields about 244,000 yen, with a cost loss of NT$300-800.

Suitable for: Well-planned travelers with confirmed itineraries, especially those departing from Taoyuan Airport.

Method 4: Foreign Currency ATM Withdrawal — Most Flexible

Use a chip-enabled bank card to withdraw yen cash from foreign currency ATMs, available 24/7. Interbank withdrawals cost only NT$5 per transaction. However, foreign currency ATMs are scarce (about 200 nationwide), and denominations are limited to 1,000, 5,000, and 10,000 yen bundles.

Fubon Bank’s foreign currency ATMs allow up to NT$150,000 per day with your bank card; other banks like CTBC, Taishin, and E.SUN offer similar services but on a smaller scale.

Actual Cost: With NT$50,000, you get about 243,000 yen, costing NT$800-1,200 in fees.

Suitable for: People who cannot visit during banking hours or need emergency cash.

Reminder: Daily withdrawal limits at foreign currency ATMs

From October 2025, many banks have adjusted limits due to anti-fraud measures. Our bank’s card limit is mostly NT$120,000-150,000 per day; other banks’ limits are often below NT$100,000. It’s recommended to split withdrawals or prioritize using our bank’s card to avoid accumulating multiple NT$5 fees per transaction.

Four Major Currency Exchange Strategies Comparison

Best Timing for Currency Exchange

Short-Term Volatility Space

Currently, USD/JPY fluctuates between 154-155. The market has yet to fully digest the BOJ’s rate hike expectations. Short-term risks include:

1. Arbitrage Position Closure: If global risk sentiment improves suddenly, large yen arbitrage positions will be closed, pushing USD/JPY higher and weakening yen appreciation. Volatility could reach 2-5%.

2. Geopolitical Spillover: Rising tensions in Taiwan Strait or the Middle East could lead safe-haven capital into yen, but reverse risks also exist.

Suggested Strategies

Gradual Exchange: Avoid all-at-once conversion; instead, split into 3-5 transactions, each NT$10,000-20,000. This reduces average cost and captures different exchange rate waves.

Prioritize Spot Rates: If funds permit, prefer “online exchange” over cash counter, saving 1-2% in costs.

Monitor Central Bank Moves: BOJ meetings and Fed policy announcements influence short-term rates. Consider timing entries around these events.

Capital Activation After Currency Exchange

Don’t let your yen sit idle without earning interest. Here are four options suitable for small investors:

Yen Fixed Deposit — Stable Income

Open a foreign currency account and transfer funds online into fixed deposits, starting from 10,000 yen. Major banks (E.SUN, Taiwan Bank, Mega) offer annual interest rates of 1.5-1.8%, much higher than NT$ deposits. Lock-in periods are typically 1-3 months, with moderate liquidity.

Yen Insurance Policy — Medium-Term Capital Preservation

Purchase yen savings insurance from Cathay, Fubon, Nanshan Life, etc. Guaranteed interest rates of 2-3%, with terms of 5-10 years, plus insurance coverage. Suitable for medium-term capital allocation.

Yen ETFs — Growth in Waves

ETFs tracking the yen index, such as Yuanta 00675U or Fuhua 00703, can be bought in broker apps as fractional shares, suitable for regular investment. Annual management fee around 0.4%, with balanced risk.

Forex Trading — Professional Wave Trading

Trade USD/JPY, EUR/JPY, and other currency pairs directly on forex platforms to capture intraday or swing movements. Advantages include two-way trading, 24-hour markets, and leverage amplification; risks are high and require expertise. Beginners should start with small trades.

Common Forex Exchange FAQs

Q: What’s the difference between cash rate and spot rate?

Cash rate applies to physical cash transactions, delivered immediately. The advantage is instant receipt; the downside is higher cost (1-2% worse than market rate), plus most banks charge handling fees.

Spot rate is used for electronic transfers, no physical cash involved, settled in two business days (T+2). It’s closer to international market prices and cheaper. If cash is needed, an additional spread fee applies.

Q: How much yen can I get with NT$10,000?

Using Taiwan Bank’s cash rate of 4.85 JPY/NT$ on December 10, 2025: NT$10,000 × 4.85 = 48,500 yen

Using spot rate of 4.87 JPY/NT$: NT$10,000 × 4.87 = 48,700 yen

Difference is about 200 yen, roughly NT$40.

Q: What ID do I need to bring for counter exchange?

For Taiwanese nationals exchanging cash, bring: ID card + passport. Foreigners need: passport + residence permit. Companies need: business registration certificate.

If pre-booked online (online exchange), also bring transaction notice. Under 20 years old require parental consent; large amounts (over NT$100,000) may require source of funds declaration.

Q: Are there withdrawal limits at foreign currency ATMs?

Yes. From October 2025, limits are adjusted due to fraud prevention:

• Our bank’s card limit: NT$120,000-150,000 per day
• Other banks’ cards: mostly below NT$100,000
• Interbank fee: NT$5 per transaction

It’s recommended to split withdrawals or prioritize our bank’s card to save fees. During peak times (airports, start of month), cash may run out; plan ahead.

Summary and Recommendations

Yen is no longer just for travel “pocket money,” but also a risk hedge and investment asset. The current rate of 4.85 hits a yearly high, and BOJ rate hike expectations are rising. In the short term, yen’s appreciation against NT$ remains promising.

Core Suggestions:

1. Use a phased approach rather than all at once: lower costs and diversify risk
2. Prefer online exchange: at least NT$500 cheaper than cash counter
3. Activate funds after exchange: choose fixed deposits, ETFs, or forex trading
4. Monitor central bank policies: BOJ rate hikes and Fed decisions influence medium-term trends

Whether for next year’s travel, small investments, or hedging Taiwan stock market fluctuations, mastering the timing and cost optimization of currency exchange can turn yen into a powerful asset allocation tool.