How to choose the currency exchange for Japanese Yen? Revealing the costs of 4 major options

Do you have this kind of trouble: even though you’re exchanging Japanese Yen, why did someone end up paying an extra NT$2,000 in fees before realizing it? In December 2025, the NT dollar to Japanese Yen exchange rate hit 4.85, with travel and investment enthusiasm both rising, but choosing the wrong currency exchange method can cost you thousands of dollars.

Instead of regretting later, it’s better to understand the costs, advantages, and disadvantages of the four major currency exchange channels now.

Why is now a good time to exchange for Japanese Yen?

The Japanese Yen is not just a travel currency; there are two underlying reasons you should pay attention to.

Short-term positive: Exchange rate appreciation
At the beginning of the year, NT$ to Yen was about 4.46, and today it has risen to 4.85, a total appreciation of 8.7%. For currency exchangers, this means you can get more Yen for the same NT$. But don’t think this trend will last forever—recent hawkish comments from Bank of Japan Governor Ueda Kazuo suggest a rate hike to 0.75% on December 19 (a 30-year high), with an 80% market expectation of a rate increase. USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now, and while short-term fluctuations are possible, medium to long-term forecasts suggest it will stay below 150, providing a window for investors to buy in stages.

Long-term asset allocation: Hedging property
The Yen ranks among the three major safe-haven currencies globally (alongside USD and Swiss Franc). Japan’s economy is stable, and debt is manageable. When stock markets fluctuate or geopolitical conflicts intensify, funds tend to flow into Yen. During the Russia-Ukraine conflict in 2022, Yen appreciated by 8% in a week, buffering stock declines of around 10%. For Taiwanese investors, holding Yen is essentially a hedge against Taiwan stock market risks.

Analyzing the four currency exchange options

Think carefully about why you exchange now, and then choose which method suits you. The costs vary greatly.

Option 1: Bank counter exchange vs airport cash exchange (most traditional, highest cost)

Bring NT$ cash directly to a bank or airport counter to buy Yen cash. Simple to operate, but there’s a hidden cost: banks use the “cash selling rate,” which is 1-2% worse than the spot rate.

For example, Taiwan Bank’s rate on December 10, 2025:

• Cash selling rate: 1 Yen = NT$0.2060 (NT$1 = 4.85 Yen)
• Some banks add NT$100-200 handling fee

Comparison of bank rates (2025/12/10):

• Taiwan Bank: 0.2060 NT$/Yen, no fee
• Mega Bank: 0.2062 NT$/Yen, no fee
• E.SUN Bank: 0.2067 NT$/Yen, NT$100 per transaction
• Cathay United Bank: 0.2063 NT$/Yen, NT$200 per transaction
• Fubon Bank: 0.2069 NT$/Yen, NT$100 per transaction

Exchanging NT$50,000 at these rates results in a loss of NT$1,500-2,000 just from the rate difference. Plus handling fees, this is the most expensive way to exchange cash.

When to choose this?
For urgent airport needs, unfamiliar with online methods, or small cash amounts.

Option 2: Online banking exchange + ATM withdrawal of foreign currency (flexible, complex fees)

Log into your bank app or website, convert NT$ to Yen at the “spot sell rate,” and deposit into a foreign currency account (about 1% better than cash rate). Then withdraw cash at an ATM or counter.

Note: Cross-bank foreign currency transfer fees apply. If you use a different bank’s card at Taiwan Bank ATMs to withdraw Yen, Taiwan Bank charges NT$5-50 per transaction plus the exchange rate spread (minimum NT$100), so the total cost isn’t low.

Advantages include:

• 24-hour operation, allowing staged purchases for average cost
• Buy more when the rate dips (e.g., NT$ to Yen below 4.80)
• If not withdrawing cash, you can transfer directly into a Yen account for deposits or investments

Currently, Taiwan Bank’s Yen fixed deposit annual interest rate is about 1.5-1.8%, E.SUN Bank around 1.6%.

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

When to choose this?
If you have foreign exchange investment experience and plan to hold Yen long-term.

Option 3: Online currency exchange + airport cash pickup (best planning, moderate cost)

No need to open a foreign currency account. Fill in the amount, branch, and date online, complete the transfer, then bring ID and transaction notice to the designated branch to pick up cash.

Taiwan Bank’s “Easy Purchase” online exchange feature:

• No handling fee (NT$10 if paid via Taiwan Pay)
• 0.5% better exchange rate
• 14 pickup points at Taoyuan Airport, 2 open 24 hours
• Pre-booking available for same-day pickup

Estimated cost for NT$50,000: NT$300-800, the most cost-effective among the four options.

When to choose this?
For planned trips, airport cash needs, or maximizing exchange rate benefits.

Option 4: Foreign currency ATM withdrawal (most immediate, fewest locations)

Use a chip-enabled debit card at foreign currency ATMs to withdraw Yen directly, 24/7, deducted from NT$ account. Cross-bank fee is NT$5.

Limitations:

• Only about 200 locations nationwide, fewer than regular ATMs
• Fixed denominations (1,000/5,000/10,000 Yen), often sold out during peak times (e.g., airports)

For example, E.SUN Bank’s foreign currency ATM:

• Daily withdrawal limit NT$150,000
• No exchange fee
• But watch out for cross-bank transfer fees—using a non-bank card may incur NT$5-50 fee. Also, risk of not being able to get cash if ATMs run out.

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

When to choose this?
For urgent, last-minute needs, no time to visit bank, or nearby ATM access.

Quick cost comparison table of the four options

(Based on data from December 10, 2025, for NT$50,000 exchange)

What to do after exchanging Yen? Don’t let your money “sit idle”

Exchanging Yen is just the first step. If you leave it idle, you miss out on potential gains.

Conservative: Yen fixed deposit
Start from NT$10,000, annual interest 1.5-1.8%. Both E.SUN and Taiwan Bank offer online accounts.

Mid-term: Yen insurance policies
Cathay and Fubon offer savings insurance with guaranteed 2-3% interest, suitable for 3-5 year holdings.

Growth: Yen ETFs
Yuan Da 00675U, 00703 tracking Yen indices, with 0.4% annual management fee, suitable for lump-sum or periodic investment.

Swing trading: USD/JPY, EUR/JPY forex trading
Capture Yen fluctuations, long and short, 24/7 trading, suitable for experienced investors.

Common questions answered quickly

Q: How much is the difference between cash rate and spot rate?
Cash rate is a special rate for physical bills, usually 1-2% worse than spot. Spot rate is used for electronic transfers, import/export, settled in T+2. Simply put, cash is convenient but costly; spot is cheaper but takes time.

Q: How much Yen can NT$10,000 buy?
Using the formula: Yen amount = NT$ amount × current rate. At Taiwan Bank’s cash rate of 4.85, NT$10,000 ≈ 48,500 Yen. Using spot rate 4.87, about 48,700 Yen. The difference is about 200 Yen (~NT$40).

Q: What ID do I need for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. If pre-booked online, bring transaction notice. Under 20 needs parent’s accompaniment. Large amounts (over NT$100,000) may require declaration of source.

Q: What is the daily withdrawal limit at foreign currency ATMs?
Varies by bank. CTBC: NT$120,000; Taishin: NT$150,000; E.SUN: NT$150,000. But watch out for cross-bank transfer fees—using non-bank cards may incur NT$5-50. Many banks now limit to NT$100,000-150,000 per day; consider spreading withdrawals.

Final advice

Yen is no longer just “pocket money for travel,” but an asset with hedging functions. Whether for travel, investment, or risk hedging, adopting a “staged exchange + post-exchange allocation” approach minimizes costs and maximizes gains.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM withdrawal,” then move into deposits, ETFs, or small-scale trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.

Remember: currency exchange is a transaction, and transactions have costs. As long as you choose the right method, these costs are manageable.