Which method should you choose to exchange Japanese Yen? A comparison of four major channels with real tests, revealing the most cost-effective solution

December 2025, the NT dollar to Japanese Yen is about 4.85, up 8.7% annually. The trend of overseas travel and Yen hedging strategies are heating up simultaneously, but the cost differences in currency exchange can amount to thousands of NT dollars. We tested mainstream channels such as Taiwan Bank, E.SUN, and E.SUN Bank to help you find the truly most cost-effective way to exchange.

First ask yourself: Is it the right time to exchange Yen now?

Simply put: It’s somewhat advantageous, but should be done in installments.

The current exchange rate is in a relatively volatile range. The hawkish remarks from the Bank of Japan governor have driven expectations of rate hikes, with a meeting on December 19 expected to raise rates to 0.75% (a 30-year high), and Japanese bond yields have surged to 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with short-term fluctuations possibly returning to 155, and medium to long-term forecasts below 150.

For investors, the Yen, as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), is suitable for hedging against Taiwan stock market volatility. But short-term risks include arbitrage closing positions, which could cause 2-5% fluctuations. Conclusion: enter in installments, don’t exchange everything at once.

4 channels for NT dollar to Yen exchange, cost disclosures

1. Online currency exchange + airport pickup｜Lowest cost, top choice for travelers

Process: Fill in amount on bank website → complete exchange → bring ID + transaction notice to pick up at counter

Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with Taiwan Pay for only NT$10), with about 0.5% favorable exchange rate. You can reserve at 14 locations at Taoyuan Airport (2 open 24 hours).

Estimated cost for NT$50,000: about NT$300-800 loss

Advantages: Better exchange rate, often no handling fee, designated airport pickup, 24-hour convenience

Disadvantages: Need to make reservation 1-3 days in advance, pickup limited to business hours, branch cannot modify

Suitable for: Planned travelers who want to withdraw cash directly before travel

2. Bank counter cash exchange｜Most traditional, higher handling fees

Process: Bring NT$ cash → bank counter → receive cash on the spot

Using “cash selling rate” (1-2% worse than spot rate), plus handling fee, results in the highest cost.

Estimated cost for NT$50,000: about NT$1,500-2,000 loss

Mainstream bank cash selling rates (2025/12/10):

• Taiwan Bank: 0.2060 (free)
• Mega Bank: 0.2062 (free)
• E.SUN Bank: 0.2067 (NT$100 per transaction)
• Taipei Fubon: 0.2069 (NT$100 per transaction)

Advantages: Safe and reliable, denominations available (1,000/5,000/10,000 Yen), on-site assistance

Disadvantages: Worst exchange rate, limited business hours (9:00-15:30 weekdays), higher costs due to fees

Suitable for: Small amounts for urgent airport needs, unfamiliar with online operations

3. Foreign currency ATM withdrawal｜Flexible and immediate, limited locations

Process: Chip card at foreign currency ATM → deduct from NT$ account → receive cash on site

E.SUN Bank’s foreign currency ATMs allow withdrawal of Yen from NT$ accounts, with a daily limit of NT$150,000, no exchange fee, and only NT$5 cross-bank fee.

Estimated cost for NT$50,000: about NT$800-1,200 loss

Withdrawal limits (2025 new system):

• CTBC and others: NT$120,000 equivalent per day
• Taishin Bank: NT$150,000 equivalent per day
• E.SUN Bank: NT$50,000 (50 banknotes) per day, with NT$150,000 in debit

Advantages: 24/7 real-time, high flexibility, low cross-bank fee, no currency exchange fee

Disadvantages: Limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000), cash may run out during peak times

Suitable for: Urgent, on-the-spot needs, no time to visit bank

4. Online exchange + in-person withdrawal｜Better rates, suitable for regular investments

Process: Use bank app/website to exchange → sell at spot rate → pick up cash at counter or foreign currency ATM

E.SUN Bank’s app exchange fee is the difference between spot and cash rate, minimum NT$100.

Estimated cost for NT$50,000: about NT$500-1,000 loss

Advantages: Better exchange rate, 24/7 operation, can buy in installments to average costs, suitable for dollar-cost averaging

Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fee, cross-bank fee NT$5-100

Suitable for: Those experienced with forex, using foreign currency accounts regularly, considering Yen fixed deposits

Direct comparison of 4 options

Conclusion: If budget allows, use “online exchange”; for urgent needs, rely on “foreign currency ATM”; for regular investments, choose “online exchange.”

After exchanging Yen, where should the money go?

Don’t let Yen sit idle without interest. Four small investment options:

1. Yen fixed deposit｜Steady income
E.SUN / Taiwan Bank open foreign currency accounts, deposit online. Minimum NT$10,000 Yen, annual interest 1.5-1.8%, suitable for conservative investors.

2. Yen savings insurance｜Mid-term protection
Cathay / Fubon life insurance for savings insurance, guaranteed interest 2-3%, with insurance coverage.

3. Yen ETF｜Growth allocation
Yuan Da 00675U tracks Yen index, can buy fractional shares via broker app, annual management fee 0.4%, suitable for dollar-cost averaging.

4. Forex trading｜Swing trading
Trade USD/JPY or EUR/JPY directly, forex platforms offer zero commission, low spreads, 24-hour trading, long/short, suitable for short-term volatility.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical cash, delivered immediately but worse (1-2% below spot). Spot rate is the foreign exchange market’s rate for settlement within two business days, closer to international market price, used for electronic transfers, import/export, foreign currency accounts.

Q: How many Yen can I get for NT$10,000?
Exchange rate = Yen amount ÷ NT$ amount. Using Taiwan Bank’s cash selling rate 0.2060, NT$10,000 ≈ 48,543 Yen; with spot rate 4.87, about 48,700 Yen, difference of 200 Yen (~NT$40).

Q: What to bring for counter exchange?
Locals: ID + passport; foreigners: passport + residence permit. Company: business registration. Online reservation also needs transaction notice. Under 20: must be accompanied by parent; over NT$100,000 may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawal?
From October 2025, limits are adjusted for fraud prevention. CTBC etc.: NT$120,000/day; Taishin: NT$150,000/day; E.SUN: NT$50,000/day (up to NT$150,000 debit). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final reminder

Yen is no longer just travel “pocket money,” but also a hedging asset. Use installment exchange + don’t leave it idle—leverage online exchange for the best rates, then transfer to fixed deposits or ETFs for interest growth. This way, you not only enjoy cost-effective travel but also add a layer of protection amid global market fluctuations.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then upgrade to fixed deposits, ETFs, or even try forex swing trading based on needs. Step by step, your Yen assets will quietly grow.