Is now the right time to exchange Japanese Yen? An ultimate currency exchange guide from 50,000 to 500,000

The NT$ to JPY exchange rate has reached 4.85, appreciating by 8.7% compared to the beginning of the year at 4.46. This means that just by exchanging NT$, you can profit from the exchange margin. But is exchanging JPY really just for traveling abroad? In fact, the Japanese yen has become a “hedging asset” for many Taiwanese investors, holding a status comparable to the role of the US dollar and euro in the international market.

The question is: The same NT$50,000, whether exchanged at the bank counter, online, or at the airport, can differ by up to NT$2,000. Do you know how to exchange most wisely?

Why is the JPY so sought after?

Many think that exchanging JPY is only for buying cosmetics and eating ramen. Actually, there is a deeper logic behind it.

Travel and consumption are basic needs. Over 40% of merchants in Japan still only accept cash, and purchasing demand has also increased the volume of JPY exchanges. But what truly makes JPY a “hard currency” is its hedging property.

JPY, USD, and Swiss Franc are listed as the three major safe-haven currencies globally. When stock markets plummet and geopolitical tensions rise, capital flows into JPY. Take the Russia-Ukraine war in 2022 as an example: JPY appreciated 8% in a week, while stock markets fell 10%. For Taiwanese investors, holding JPY is like adding an “insurance” to their Taiwan stock market volatility.

Even more interesting is that the Bank of Japan has maintained ultra-low interest rates (currently 0.5%) for a long time, making JPY a “funding currency”. Smart international investors borrow low-interest JPY to invest in higher-yield USD (interest rate spread up to 4%), and when risks increase, they close positions and buy back JPY. In other words, exchanging JPY is not just for travel needs but also participating in global arbitrage games.

The 4 most common ways Taiwanese people exchange JPY, with huge cost differences

Now the key question: How to exchange at the lowest cost?

Using real rates from December 2025 as an example, exchanging NT$50,000 via different methods can result in a cost difference of NT$2,000. Not convinced? Keep reading.

Method 1: Bank counter cash exchange (most traditional, but most costly)

Bring NT$ cash into a bank or airport counter and exchange for JPY cash on the spot. It sounds safest, but you are using the “cash selling rate,” which is 1-2% worse than the market rate, plus handling fees, making it very expensive.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/JPY (meaning NT$1 = 4.85 JPY). E.SUN and Cathay United Bank also charge an additional NT$100-200 handling fee.

Exchanging NT$50,000 at the counter? Estimated loss NT$1,500-2,000.

Suitable for: Urgent airport needs, unfamiliar with online operations, small cash requirements.

Method 2: Online exchange + ATM withdrawal (a choice for novice investors)

This is an upgraded method. Using the bank app, convert NT$ to JPY at the “spot selling rate” (1% better than cash selling rate), and deposit into a foreign currency account. When cash is needed, withdraw via ATM or counter.

Advantages? Better exchange rates, ability to buy in installments to average costs, 24/7 operation. Disadvantages? Need to open a foreign currency account first, and withdrawal fees (minimum NT$100).

E.SUN Bank and Taiwan Bank offer this service. When NT$/JPY drops below 4.80, you can buy in parts to avoid being caught in a full exchange at a high rate.

Estimated cost: NT$500-1,000. Suitable for: Those with forex experience, long-term planning, or even planning to invest in JPY fixed deposits.

Method 3: Online currency settlement + airport pickup (must-know before traveling)

This trick is shared privately among smart travelers. No need for a foreign currency account. Just select “online currency settlement” on the bank’s website, fill in currency, amount, and preferred branch for pickup, book the date, and bring ID and transaction notification on departure day.

Taiwan Bank’s “Easy Purchase” even waives handling fees (using Taiwan Pay costs only NT$10), and offers a 0.5% better rate. Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours.

Why is this so popular? Because it saves on fees, offers good rates, and allows designated airport pickup—tailored for travelers.

Estimated cost: NT$300-800. Suitable for: Well-planned trips, fixed schedules, travelers wanting to withdraw directly at the airport.

Method 4: Foreign currency ATM withdrawal anytime (fastest and most flexible)

Use a chip-enabled financial card at foreign currency ATMs to withdraw JPY directly, available 24/7. About 200 locations nationwide, cross-bank fee NT$5. No appointment needed, no banking hours restrictions.

SinoPac Bank’s foreign currency ATMs allow NT$ account holders to withdraw JPY with a daily limit of NT$150,000, no exchange fee.

Note: Starting October 2025, banks will strengthen anti-fraud measures, and the daily withdrawal limit for third-party digital accounts will drop to NT$100,000. During peak times (especially airports), cash may run out—don’t wait until the last minute.

Estimated cost: NT$800-1,200. Suitable for: No time to visit banks, urgent needs, flexibility seekers.

Which method is most cost-effective for exchanging NT$50,000, NT$100,000, NT$500,000?

Is now a good time to exchange JPY?

Short answer: Yes, but with conditions.

The yen has appreciated 8.7% annually, which is significant. But the problem is, JPY is currently volatile. The Bank of Japan’s Governor Ueda is hawkish, with expectations of a rate hike to 0.75% on December 19 (a 30-year high), and Japanese government bond yields have surged to 1.93%.

What does this mean? Short-term, JPY may still rise, but when global arbitrage positions are closed, it could weaken 2-5%. Also, the direction of USD and EUR will influence JPY’s relative value.

Advice: Use staggered entry, don’t exchange everything at once. If your goal is hedging, hold JPY for 6-12 months. If just for travel, enough to cover 1-2 weeks of expenses—don’t be greedy.

After exchanging JPY, don’t let it sit idle

Once you have JPY, don’t let it sit without earning interest. You can do these:

Option 1: JPY fixed deposit (most stable) E.SUN, Taiwan Bank foreign currency accounts, starting from NT$10,000 JPY, with annual interest rates of 1.5-1.8%. Stable and risk-free.

Option 2: JPY ETFs (growth potential) Yuan Tai 00675U tracks the JPY index, can buy fractional shares via broker, suitable for regular investment. Management fee 0.4% annually.

Option 3: USD/JPY or EUR/JPY forex trading (opportunity with risk) Trade USD/JPY or EUR/JPY directly on forex platforms, capturing JPY fluctuations. Both long and short positions, 24-hour trading, but requires risk awareness.

Option 4: JPY insurance policies (medium-term holding) Cathay, Fubon life’s JPY savings insurance, with guaranteed interest rates of 2-3%.

While JPY is a strong hedging asset, it also fluctuates bidirectionally. For investment purposes, diversify risk with JPY ETFs. For swing trading, USD/JPY or EUR/JPY forex trading are classic choices.

Quick FAQ

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

Cash rate is used for physical cash transactions, usually worse (bank’s profit margin), but allows immediate cash pickup. Spot rate is used for electronic transfers, more favorable (close to market rate), settled T+2. In short: spot rate is more consumer-friendly.

Q: How much JPY do I get for NT$10,000?

Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 ≈ 48,500 JPY. Using the spot rate (~4.87), about 48,700 JPY—difference of 200 JPY (~NT$40).

Q: What to bring for counter exchange?

Taiwanese: ID card + passport. Foreigners: passport + residence permit. Companies: business registration. Online booking: transaction notification. Under 20 needs parental consent. Large amounts (>NT$100,000) may require source declaration.

Q: Foreign currency ATM withdrawal limit?

Post-2025, most banks set daily limit around NT$120,000-150,000. Cross-bank limits depend on issuing bank. It’s recommended to split withdrawals to avoid shortages during peak times.

Final words

The JPY has evolved from “pocket money for travel” to a hedging and investment asset. Whether planning a trip to Japan next year or wanting to hedge against NT$ depreciation, following the principles of “staggered exchange and reallocation” can minimize costs.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM” to test the waters. Once familiar, try fixed deposits, ETFs, or even swing trading USD/JPY or EUR/JPY. This way, not only traveling becomes more cost-effective, but you also gain an extra layer of protection amid global market fluctuations.