Is now the right time to invest in Japanese Yen? An article explaining the most cost-effective tips for exchanging currency in Taiwan

Why Now Is a Good Time to Exchange Yen

By December 2025, the NT dollar to Japanese yen exchange rate has reached a critical level of 4.85. Since the beginning of the year at 4.46, the yen has appreciated about 8.7% against the NT dollar. This is a significant signal for Taiwanese investors planning to travel abroad or diversify their foreign currency holdings.

Market observations show that the demand for yen exchange in Taiwan has increased by 25% in the second half of the year, driven by two main factors: first, the revival of domestic tourism leading to outbound travel, and second, investors seeking safe-haven assets. The Bank of Japan (BOJ) is also expected to raise interest rates (projected to reach 0.75% on December 19, a 30-year high), further boosting the yen’s appeal as a store of value.

However, “now is a good deal” does not mean “exchange all at once.” Next, we will analyze the actual methods that can help you save money when acquiring yen.

The 4 Most Cost-Effective Ways to Obtain Yen

Option 1: Online transfer with direct airport pickup — Highly recommended for office workers

No need to open a foreign currency account first. Simply book online via the bank’s website, specify the currency, amount, and designated pickup branch, and after transferring funds, pick up with your ID and transaction notification. Taiwan Bank’s “Easy Purchase” service also offers fee-free transactions (pay only NT$10 via Taiwan Pay), with an exchange rate advantage of about 0.5%.

The biggest advantage is the ability to reserve airport branches for pickup — Taoyuan Airport has 14 Taiwan Bank locations, including 2 open 24 hours. This is a lifesaver for those who remember to exchange money only the day before their trip.

Advantages: Better exchange rates, often no handling fee, designated airport pickup, no need to have a foreign currency account beforehand
Disadvantages: 1-3 days reservation needed, pickup time limited by bank hours, reservation at a branch cannot be changed
Suitable for: Planned travelers who want to pick up cash directly at the airport

Option 2: Foreign currency ATM withdrawal — The most flexible 24-hour option

Use a chip-enabled debit card to withdraw yen cash at bank foreign currency ATMs, supporting 24-hour operation. Withdraw directly from your NT dollar account, with cross-bank fees as low as NT$5. This is the cheapest among the four methods. E.SUN Bank’s foreign currency ATM withdrawals for yen are fee-free, with a daily limit of NT$150,000.

Note that Japan’s ATM withdrawal service will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). Also, foreign currency ATMs are limited (about 200 nationwide), and denominations are fixed at 1,000/5,000/10,000 yen. Cash may run out during peak times (e.g., airports). It’s advisable not to wait until the last minute to withdraw.

Advantages: Instant withdrawal, high flexibility, lowest cross-bank fees, 24-hour support, fee-free withdrawals in Japan
Disadvantages: Limited locations and denominations, cash shortages during peak hours, sparse nationwide distribution
Suitable for: Those with no time to visit banks or need emergency cash

Option 3: Online exchange with foreign currency account — Best for investors

Use online banking or apps to convert NT dollars into yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, you can withdraw at a branch or via foreign currency ATM, but a handling fee applies (starting around NT$100). E.SUN Bank’s app charges a fee based on the difference between spot and cash rates, with a minimum of NT$100.

The main advantage is the ability to observe exchange rate trends and buy in batches at low points. For example, if the NT dollar to yen drops below 4.80, buying in installments can effectively average the cost. After exchanging, yen can be transferred into fixed deposits earning about 1.5-1.8% annual interest, or invested in yen ETFs for continued appreciation.

Advantages: 24-hour operation, ability to build positions gradually, favorable exchange rates, convenient for future investments
Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees, requires basic foreign exchange knowledge
Suitable for: Investors experienced with foreign currencies, long-term holders of yen

Option 4: In-branch cash exchange — For emergency use only

Bring NT dollar cash directly to a bank branch or airport counter to exchange for yen cash. Although the simplest operation, it uses the “cash selling rate” (about 1-2% worse than spot rate), making it the most expensive overall. For example, Taiwan Bank’s cash selling rate is about NT$0.2060 per yen (roughly NT$4.85 per yen). Some banks also charge fixed handling fees.

Based on recent rates, in-branch costs can result in a loss of NT$1,500-2,000 per NT$50,000 exchanged. We recommend this only for urgent airport needs or unfamiliar with online methods.

Advantages: Safe and reliable, denominations available, staff assistance on-site
Disadvantages: Worst exchange rates, limited operating hours (weekday 9:00-15:30), possible additional fees
Suitable for: Those unfamiliar with digital methods or needing small amounts urgently

Real-Time Comparison of Bank Exchange Rates and Fees

As of December 10, 2025, the following are the cash selling rates and handling fees of major banks:

(Source: Official bank websites, updated 2025/12/10 9:30. Actual rates are subject to real-time updates.)

Cost Comparison of the 4 Methods

Based on exchanging NT$50,000, estimated costs for each method are:

Yen Exchange Rate Trends and Investment Opportunities

Currently, the NT dollar to yen is around 4.85, but medium to long-term trends are worth watching. USD/JPY has fallen from a high of 160 at the start of the year to 154.58. Short-term fluctuations may bring it back to 155, but the long-term outlook suggests below 150.

The BOJ is poised to raise interest rates, with Governor Ueda’s hawkish comments pushing market expectations to 80%. Once rate hikes begin, the yen’s interest rate differential will widen, supporting the currency. Meanwhile, the US is entering a rate-cut cycle, indirectly benefiting the yen.

However, short-term risks include unwinding arbitrage trades—if the US-Japan interest differential narrows or global risk increases, arbitrageurs borrowing yen at low rates may buy back yen, causing 2-5% short-term volatility. A gradual, phased approach is recommended to avoid all-in exchange.

3 Ways to Grow Your Yen Holdings After Exchange

Yen Fixed Deposit — The Most Stable Choice

Open a foreign currency account with E.SUN or Taiwan Bank, deposit yen online into a fixed deposit. Minimum NT$10,000 equivalent, with annual interest of 1.5-1.8%, more attractive than NT dollar deposits (~1.3%). This is the simplest way to preserve idle yen.

Yen ETFs — Diversify Risks with Growth Potential

Yuanta 00675U tracks the yen index and can be bought as fractional shares via broker apps, suitable for regular investing. While yen is a safe-haven, it still has volatility, and ETFs help diversify. Management fee is only 0.4% annually.

Foreign Exchange Trading — Advanced Option to Capture Fluctuations

Trade USD/JPY or EUR/JPY directly on foreign exchange platforms. Benefits include two-way trading, 24-hour access, and small capital requirements, suitable for swing or intraday strategies. Risk management is essential.

Frequently Asked Questions

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

Cash exchange rate is the rate banks offer for physical cash transactions, usually 1-2% worse than the spot rate. The spot rate is the T+2 settlement rate in the foreign exchange market, used for electronic transfers and non-cash settlements, and is closer to the international market.

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

Based on Taiwan Bank’s rate of about NT$0.2060 per yen (roughly NT$4.85 per yen), NT$10,000 can buy about 48,500 yen. Using the spot rate of NT$0.2049 (about NT$4.87 per yen), it’s approximately 48,700 yen, a difference of about 200 yen.

Q: What ID do I need to exchange cash in person?

Taiwanese citizens need to bring their ID card and passport; foreigners need their passport and residence permit. If booked online in advance, also bring the transaction notification. For large amounts (over NT$100,000), a source of funds declaration may be required. Minors under 20 need parental consent and a consent form.

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

Limits vary by bank. CTBC Bank’s debit card allows NT$120,000 per transaction and NT$120,000 per day; Taishin Bank’s limit is NT$150,000 per transaction and NT$150,000 per day; E.SUN Bank’s limit is NT$50,000 per transaction and NT$150,000 per day (including debit). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Yen Is More Than Just Travel Money

The role of yen has evolved from simple “travel cash” to an asset with both hedging and investment value. Facing the NT dollar’s depreciation pressure, yen is one of the major safe-haven currencies worth holding.

The key advice is to follow the principles of “gradual exchange + don’t sit on all your chips.” Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits for interest, diversify with ETFs, or try small-scale forex trading. This way, you can enjoy more cost-effective travel and add a layer of protection during market turbulence.

The essence of exchanging yen is not “when is the cheapest,” but “how to acquire at the lowest cost and then grow it most wisely.”