The Japanese Yen exchange rate has reached 4.85. Are you still exchanging at the most expensive rate?

By December 2025, the NT dollar to Japanese Yen has surged to 4.85, appreciating by 8.7% since the beginning of the year. Many people are preparing to exchange Yen for travel or investment, but do you know? The cost difference in exchanging Yen can be as high as NT$2,000—just because of choosing the wrong method.

Many think banks are the only option, but in Taiwan alone, there are four currency exchange channels, each with different exchange rates and handling fees. Airport currency exchange fees, bank counter service charges, online remittance discounts… these small differences can add up to enough to buy you an extra cup of bubble tea.

NT$50,000 to Yen, up to NT$2,000 difference—The key is choosing the right method

Based on the latest rates as of December 10, 2025, let’s look at the actual costs of four methods:

Method 1: Bank counter cash exchange — Most convenient but most expensive Go directly to a bank or airport to exchange cash for Yen, using the “cash selling rate” (1-2% worse than the spot rate). For example, Taiwan Bank’s cash selling rate is about NT$0.2060 per Yen. Exchanging NT$50,000 yields about 243,000 Yen, resulting in a loss of NT$1,500-2,000.

Some banks also charge an extra NT$100-200 handling fee, which should be noted at airport exchanges.

Method 2: Online exchange + counter withdrawal — Better rate but involves an extra fee Use a bank app to convert NT$ to Yen and deposit into a foreign currency account (using the spot selling rate, with a 1% discount). When cash is needed, withdraw at a counter or foreign currency ATM. Cash withdrawal incurs a currency conversion fee (about NT$100-200), with total losses of NT$500-1,000.

Suitable for investors with foreign currency accounts who want to buy in stages, especially when the exchange rate drops (NT$ to Yen below 4.80).

Method 3: Online remittance with airport pickup — The smartest choice This is the golden plan before traveling abroad. No need for a foreign currency account. Simply book via the bank’s official website (Taiwan Bank’s “Easy Purchase” with no handling fee, only NT$10 Taiwan Pay transfer fee). The exchange rate is about 0.5% better, then pick up Yen cash at designated airport branches.

Taoyuan Airport has 14 Taiwan Bank locations, 2 of which are open 24 hours. Currency exchange fees at the airport are basically waived, making it ideal for planned trips. The loss is only NT$300-800, the lowest among the four methods.

Method 4: 24-hour foreign currency ATMs — Most flexible but luck-dependent Use a chip-enabled debit card to withdraw Yen at foreign currency ATMs, deducting directly from a NT dollar account, with only NT$5 interbank fee. E.SUN Bank’s foreign currency ATM has a daily limit of NT$150,000, with no currency exchange fee.

The downside is only about 200 ATMs nationwide, and cash may run out during peak times, especially at airports. Estimated loss NT$800-1,200. Suitable for those who have no time for counters or need urgent cash.

Why is Yen worth exchanging? Not just for travel

The demand for Yen exchange is rising for two main reasons:

Travel and consumption needs: Most Japanese stores still only accept cash (credit card penetration about 60%), whether shopping in Tokyo, skiing in Hokkaido, or purchasing Japanese cosmetics, Yen is needed.

Investment and hedging value: Yen is one of the world’s three major safe-haven currencies (along with USD and Swiss Franc). Japan’s economy is stable, with low debt, and during market turbulence, funds flow into Yen. During the Russia-Ukraine conflict in 2022, Yen appreciated 8% in a week, buffering a 10% stock market decline. For Taiwanese investors, exchanging Yen can hedge against Taiwan stock risks.

Is now a good time to exchange? Short-term volatility, long-term optimism

Exchange rate trend: USD/JPY dropped from a high of 160 at the start of the year to 154.58. Short-term rebound to 155 is possible, but medium to long-term forecasts suggest below 150.

Catalysts: The recent hawkish comments from Bank of Japan Governor Ueda Kazuo have pushed up rate hike expectations to 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high). Japan’s bond yields have hit a 17-year high of 1.93%, further supporting the Yen.

Investment advice: Do not exchange all at once; buy in stages to average costs and avoid short-term trading risks of 2-5% caused by market fluctuations.

After exchanging Yen, let it sit—4 ways to increase value

Yen fixed deposit: Annual interest rate 1.5-1.8%, minimum NT$10,000, available at E.SUN Bank and Taiwan Bank.

Yen savings insurance: Cathay and Fubon Life offer guaranteed interest rates of 2-3%, suitable for mid-term conservative holdings.

Yen ETFs (e.g., Yuanta 00675U): Track Yen index, annual management fee 0.4%, can be bought as fractional shares via brokerage apps.

Forex swing trading: Trade USD/JPY or EUR/JPY directly, with long and short positions, 24-hour trading, to capture exchange rate movements.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical cash, with a larger spread (about 1-2%). Spot rate is the FX market rate settled T+2, used for electronic transfers, more favorable but requires waiting for settlement.

Q. How much Yen can I get for NT$10,000?
Based on Taiwan Bank’s rate on December 10, 2025, at NT$4.85 cash selling rate, NT$10,000 yields about 48,500 Yen; using the spot rate of NT$4.87, about 48,700 Yen—difference of roughly NT$40.

Q. What do I need to bring for counter exchange?
ID card + passport (for foreigners, bring passport + residence permit). If booking online, bring transaction notification. Under 20 needs parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

Q. What’s the daily withdrawal limit at foreign currency ATMs?
Post-2025 regulations, most banks’ daily limits are reduced to NT$100,000-150,000. CTBC and Taishin Bank have single transaction limits of NT$120,000-150,000; E.SUN Bank’s minimum is NT$50,000 (50 banknotes). Other banks’ limits depend on issuing bank policies. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Staged currency exchange + planned conversion

Yen is no longer just for travel “pocket money,” but also a hedging asset with investment value. By following the two principles of “staged exchange” and “convert fully into fixed deposits or ETFs,” you can minimize costs and maximize returns.

For beginners, start with the simplest method: “Taiwan Bank online remittance + airport pickup” (lowest airport exchange fee), or use “foreign currency ATM” for emergencies. Then, transfer Yen into fixed deposits, ETFs, or swing trading based on your needs. Not only is it more cost-effective for travel, but it also provides an extra layer of protection during global market turbulence.