How to exchange TWD to JPY in the most cost-effective way? Master 4 major channel tips at once

By the end of 2025, the NT$ to Japanese Yen exchange rate has risen to 4.85, and the opportunity to exchange for yen has returned. From travel to investment, the yen has a wide range of uses, but to truly save money, you need to know the best way to exchange. We have organized the latest currency exchange channels for you, whether your budget is 5,000 or 50,000 NT$, there are suitable options.

Why is it worth exchanging for yen?

When it comes to foreign currency investment, Taiwanese people often prefer yen. This is not only because of the popularity of travel to Japan, but also because the yen plays an important role in daily life and finance.

Travel, shopping, and daily needs

Most Japanese merchants prefer cash transactions (credit card penetration is only 60%), so cash yen is needed for shopping, dining, and accommodation. In addition, online shopping enthusiasts, those going to study or work in Japan, all need to prepare yen in advance.

Financial hedging role

The yen is one of the three major safe-haven currencies alongside the US dollar and Swiss franc. Japan’s economy is stable, with low debt levels, and during market turbulence, funds often flow into the yen. When the Russia-Ukraine conflict broke out in 2022, the yen appreciated by 8% in a single week, effectively offsetting a 10% decline in the stock market. For Taiwanese investors, exchanging for yen not only supports travel but also hedges against Taiwan stock market fluctuations.

Recently, the Bank of Japan has taken a hawkish stance, with Governor Ueda Kazuo hinting at an 80% chance of interest rate hikes, possibly raising rates to 0.75% on December 19 (a 30-year high). In contrast, the US is entering a rate-cutting cycle, leaving room for interest rate differentials, and yen arbitrage opportunities are emerging.

4 major ways to exchange yen, with significant cost differences

Many people only know about exchanging at banks by queuing, but just the exchange rate difference can cost you several cups of coffee. Here is a comparison of the four latest channels.

Method 1: Bank counter cash exchange

Bring NT$ cash directly to a bank branch or airport counter to exchange for yen cash. This is the most traditional method, but the downside is the “cash selling rate,” which is about 1-2% worse than the spot rate, plus an extra fee of 100-200 NT$.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 NT$ per yen (1 NT$ = 4.85 yen). Compared to other banks like Taipei Fubon (0.2069) and E.SUN (0.2067, with a 100 NT$ fee), Taiwan Bank and Hua Nan Bank offer relatively favorable rates.

Who is suitable? For urgent, small amounts, travelers who are not comfortable with online operations, or those exchanging less than 5,000 NT$. The downside is the need to operate within bank hours (weekday 9:00-15:30), and queues may be long during peak times.

Method 2: Online currency exchange, withdraw at counter or ATM

Use bank app or website to convert NT$ into yen and deposit into a foreign currency account, enjoying the “spot sell rate” (about 1% discount). When cash is needed, go to the counter or foreign currency ATM to withdraw. Withdrawal incurs a spread fee, usually starting at 100 NT$.

The advantage of this method is 24-hour operation, suitable for staggered entry to average costs. If you keep an eye on the exchange rate and buy in stages when the rate is low (e.g., NT$ to yen below 4.80), the long-term cost can be lower. E.SUN, Taiwan Bank, Mega International Bank all offer similar services.

Who is suitable? Those with foreign exchange investment experience planning to hold yen long-term. Opening a foreign currency account is free, and you can transfer to fixed deposits (current annual interest rate about 1.5-1.8%) or buy yen ETFs like 00675U.

Method 3: Online currency settlement, pick up at airport or designated branch

No need to open a foreign currency account. Fill in the amount and pickup location (airport branch optional) on the bank’s website. After completing online settlement, bring ID and transaction notification to the counter to pick up cash. Taiwan Bank’s “Easy Purchase” service and Mega Bank offer this feature.

Taiwan Bank’s online settlement fee is only NT$10 (paid via Taiwan Pay), with about 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets, two of which operate 24 hours. You can reserve in advance the day before departure to pick up cash at the airport—very convenient.

Who is suitable? Planned travelers who want to withdraw at the airport before departure or upon arrival. Note that reservations are needed 1-3 days in advance, and pickup times are limited by bank hours.

Method 4: Foreign currency ATM withdrawal

Use a chip-enabled financial card to withdraw yen cash at foreign currency ATMs, which operate 24 hours. Deducted directly from your NT$ account, cross-bank fee is only NT$5, much lower than counter exchange. Fubon Bank’s foreign currency ATMs have a daily limit of NT$150,000, with no additional exchange fee.

The downside is limited ATM locations (about 200 nationwide), and only major currencies like yen, USD, EUR are supported, with denominations limited to 1,000/5,000/10,000 yen. During peak times (e.g., airports), cash often runs out, so don’t wait until the last minute to withdraw.

Who is suitable? Busy professionals needing quick cash, small amounts like 5,000 NT$ for urgent travel expenses.

Should I exchange 5,000 NT$ for HKD or JPY? Cost comparison

If your budget is only 5,000 NT$, is it more cost-effective to exchange for yen or HKD?

For 5,000 NT$, cash exchange at counters costs about 75-100 NT$ in losses; online settlement costs only 15-40 NT$; foreign currency ATM losses are 40-60 NT$. Compared to HKD, which has less currency fluctuation, yen at the current rate (4.85) offers better investment growth potential.

In other words, small amounts transferred into yen can be combined with yen fixed deposits or ETFs for appreciation, while HKD offers fewer opportunities. It’s recommended to use “online settlement” or “foreign currency ATM” for the lowest costs.

Cost and scenario comparison table for 4 exchange methods

Is it really worth exchanging for yen now?

In December 2025, the NT$ to yen rate reached 4.85, up from 4.46 at the start of the year, an appreciation of about 8.7%. The investment return from yen has been quite substantial, especially under the ongoing depreciation pressure on the NT$.

In the short term, the yen exchange rate faces volatility. USD/JPY has fallen from a high of 160 to around 154.58, with short-term fluctuations possibly returning to 155, but the medium to long-term forecast is below 150. The Bank of Japan’s rate hike is imminent, but global arbitrage unwinding and geopolitical conflicts (Taiwan Strait/Middle East) may still suppress the yen.

It’s advisable to stagger your entries and not exchange all at once. Observations show that in the second half of the year, Taiwan’s currency exchange demand grew by 25%, mainly driven by travel recovery and hedging needs, reflecting the yen’s value as a safe asset.

After exchanging for yen, don’t let your money sit idle

Exchanging for yen is not the end; how to make this money generate returns is the key.

Yen fixed deposits are the most stable choice, with a minimum of 10,000 yen, annual interest rate about 1.5-1.8%, offered by E.SUN and Taiwan Bank.

Yen insurance policies are suitable for medium-term holdings. Cathay and Fubon offer yen savings insurance with guaranteed rates of 2-3%, combining protection and appreciation.

Yen ETFs (like 00675U, 00703) are growth options, tracking yen indices, available for fractional purchase via broker apps, with about 0.4% annual management fee.

Forex trading is suitable for experienced investors, trading USD/JPY or EUR/JPY directly, with 24-hour trading, capturing exchange rate fluctuations but with higher risk.

While the yen is a safe-haven currency, it also faces two-way volatility. Beginners are advised to start with fixed deposits or ETFs, and consider forex trading after gaining experience.

Quick FAQs

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

Cash exchange rate applies to physical bills/coins, for immediate delivery, but usually costs 1-2% more than the spot rate. The spot rate is the T+2 settlement price in the forex market, used for electronic transfers and foreign currency accounts, offering better rates but requiring waiting.

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

Using Taiwan Bank’s cash selling rate of 4.85 on December 10, NT$10,000 can exchange for about 48,500 yen. Using the spot selling rate of 4.87, it’s about 48,700 yen, a difference of only 200 yen (~40 NT$).

Q: Which costs less, exchanging 5,000 NT$ for HKD or JPY?

For the same amount, online settlement for yen costs about 15-40 NT$, similar to HKD. But yen offers more future growth channels like fixed deposits and ETFs, making it a better choice.

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

Taiwanese need ID card + passport; foreigners need passport + residence permit. If pre-booked online, bring transaction notification. For amounts over NT$100,000, a source of funds declaration may be required.

Q: What’s the daily limit for foreign currency ATM withdrawal?

From 2025, most banks have a daily limit of NT$100,000-150,000 for foreign currency cards; other banks may have a per-transaction limit of NT$20,000. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary

The yen is no longer just pocket money for travel; it also has hedging and investment value. Whether you plan to travel to Japan next year or want to hedge Taiwan stock market risks, as long as you follow the principles of “staged exchange” and “don’t leave money idle after exchange,” you can minimize costs and maximize gains.

Beginners can start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer into fixed deposits, ETFs, or forex trading based on needs. This way, you can enjoy more cost-effective trips abroad and add a layer of protection during global market turbulence. Whether your budget is 5,000 or 50,000 NT$, there are suitable currency exchange plans waiting for you.