JPY exchange at the end of 2025 becomes a hot topic: four methods with cost differences exceeding 1,000 yuan

NTD to JPY surged to 4.85, and many people are starting to seriously consider how to exchange for yen. But did you know? The cost of exchanging 50,000 NTD through different channels can differ by over 1,500 NT dollars. This article compares all mainstream methods of exchanging for yen to help you find the most suitable option.

Bank of Japan Rate Hike Imminent, Yen Investment Value Emerges

The rising popularity of the yen is driven by several key factors.

First is the exchange rate trend. In early 2025, the NTD to JPY rate was about 4.46, and by the end of the year, it reached 4.85, appreciating by a total of 8.7%. Under the pressure of NTD depreciation, such an increase is quite significant for investors.

Second is the shift in central bank policies. The Bank of Japan (BOJ) Governor Ueda Kazuo recently made hawkish comments, attracting market attention. The market expects an 80% chance of interest rate hikes, with a possible 0.25 bps increase to 0.75% on December 19, reaching a 30-year high. Japan’s government bond yields have soared to 1.93%, a 17-year high.

What do these changes mean? The yen is no longer just a “pocket money” for travel but an asset with hedging and yield potential. As one of the three major safe-haven currencies (alongside USD and Swiss Franc), the yen often attracts capital inflows during market turbulence. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully buffering stock market declines.

Currently, Taiwan’s demand for foreign exchange in the second half of the year has grown by 25%, mainly driven by travel recovery and hedging needs.

4 Ways to Exchange Yen — Costs and Time Vary Significantly

Many think exchanging for yen is just going to the bank, but the exchange rate difference alone can eat up several drinks’ worth of money. We’ve summarized four mainstream channels, calculating the real prices for you.

Method 1: Bank Counter Cash Exchange — The Most Traditional but Costliest

Bring cash NTD to a bank branch or airport counter to exchange for yen notes. This is the most common method. The advantage is simplicity, safety, and full denominations (1,000, 5,000, 10,000 yen).

But what’s the cost? Banks use the “cash selling rate,” which is about 1-2% worse than the spot rate. For example, as of December 10, 2025, Taiwan Bank’s cash selling rate was about 0.2060 NTD per yen (roughly 4.85 yen per NTD). Some banks also charge handling fees, increasing the cost further.

For 50,000 NT dollars, cash exchange at the counter might lose 1,500 to 2,000 NT dollars. This method is suitable for those unfamiliar with online operations or for small, urgent amounts (like at the airport).

Reference cash selling rates (December 10, 2025): Taiwan Bank 0.2060 free, Mega Bank 0.2062 free, CTBC Bank 0.2065 free, E.SUN Bank 0.2067 per 100 NT, Fubon Bank 0.2058 per 100 NT.

Method 2: Online Exchange then ATM Withdrawal — Advanced Approach

Use bank app or online banking to convert NTD into yen and deposit into a foreign currency account. This uses the “spot sell rate,” which is about 1% better than cash selling rate. If cash is needed, you can withdraw at counters or foreign currency ATMs, but extra exchange fees (usually starting at 100 NT) apply.

Advantages include 24-hour operation, allowing you to buy in installments and average costs. If you buy at low points (e.g., when NTD/JPY is below 4.80), you can save a lot over time.

Disadvantages are the need to open a foreign currency account first, and additional fees when withdrawing cash. For 50,000 NT, total costs are about 500 to 1,000 NT. Best suited for those experienced in forex, planning to hold yen long-term, or even transfer into yen fixed deposits (current annual interest rate around 1.5-1.8%) to earn interest.

Method 3: Online Currency Purchase with Pre-Order — Best Before Departure

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After transferring funds, bring ID and transaction notice to the designated branch to pick up. Taiwan Bank and Mega Bank offer this service, even allowing pre-arranged pickup at airports.

For example, Taiwan Bank’s “Easy Purchase” offers fee-free online currency purchase (using Taiwan Pay, only 10 NT), with about 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, convenient for pickup before departure.

Estimated cost is 300 to 800 NT. The downside is the need to make reservations 1-3 days in advance, and pickup times are limited to banking hours. Ideal for travelers with a planned schedule who want to get yen directly at the airport.

Method 4: Foreign Currency ATM — Fastest but Limited Locations

Use chip-enabled bank cards at foreign currency ATMs to withdraw yen cash 24/7. Deducts directly from your NT account, with a cross-bank fee of only 5 NT. Fubon Bank’s foreign currency ATM allows withdrawal of yen from NT accounts, with a daily limit of 150,000 NT, and no exchange fee.

It sounds very convenient, but in reality, there are only about 200 foreign currency ATMs nationwide, with fixed denominations (1,000, 5,000, 10,000 yen). During peak times (especially at airports), cash often runs out. Estimated costs are 800 to 1,200 NT. Best for those who don’t have time to visit banks or need urgent cash, but avoid last-minute attempts to prevent missing out.

Quick Comparison Table — Cost Differences for 50,000 NT

Is It Worth Exchanging Yen Now? Staged Approach Recommended

Simply put: it’s worthwhile, but don’t exchange everything at once.

Currently, the yen exchange rate is quite volatile. Amid the US easing cycle, the yen may find support. But with the BOJ about to hike rates, market expectations of an 80% chance of rate increases, the USD/JPY has fallen from a high of 160 to around 154.58, with short-term fluctuations around 155. Long-term forecasts suggest it could further decline below 150.

For investors, yen as a safe-haven currency is suitable for hedging Taiwan stock volatility. However, short-term risks include profit-taking and position unwinding, causing 2-5% fluctuations. It’s recommended to buy in installments, reducing costs and avoiding the risk of exchanging all at once.

After Receiving Yen — Don’t Let Your Money Sit Idle

Once you’ve exchanged for yen, don’t leave the funds unused and earning no interest. Here are four options suitable for small-scale beginners:

Yen Fixed Deposit: A stable choice. Open a foreign currency account with E.SUN, Taiwan Bank, etc., deposit online, starting from 10,000 yen, with an annual interest rate of 1.5-1.8%.

Yen Insurance Policy: Medium-term holding. Cathay, Fubon Life offer savings insurance with guaranteed 2-3% interest.

Yen ETFs: Growth-oriented. Yuanta 00675U tracks the yen index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging, with an annual management fee of 0.4%.

Forex Swing Trading: Trade USD/JPY or EUR/JPY directly, with both long and short options, 24-hour trading, using forex platforms.

Choose based on your risk appetite and time commitment. If you prefer steady income, fixed deposits are easiest; if you want to capitalize on rate movements, forex trading with small capital is possible but riskier.

Common FAQs

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

Cash rate applies to physical cash transactions, usually 1-2% worse than the spot rate; spot rate is the foreign exchange market’s T+2 settlement rate, closer to international prices, suitable for electronic transfers and foreign currency accounts.

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

Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, about 48,500 yen; with the spot rate of 4.87, about 48,700 yen, a difference of roughly 200 yen (about 40 NT).

Q: What do I need to bring for counter exchange?

Taiwanese need ID + passport; foreigners need passport + residence permit; companies need business registration. For online reservations, also bring transaction notice. Under 20 years old require parental consent; amounts over 100,000 NT may need source of funds declaration.

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

Different banks have different limits. CTBC allows equivalent of NT 120,000/day; Taishin NT 150,000/day; E.SUN NT 150,000/day (including debit). From October 2025, new digital accounts limit to NT 100,000/day. It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank fees.

Summary

The yen is no longer just a “travel currency” but an asset with hedging and investment value. Whether for next year’s trip to Japan or asset allocation amid NT depreciation, following the principles of “staged exchange + don’t leave it idle” can minimize costs and maximize returns.

Beginners are advised to start with the simplest options like “Taiwan Bank online currency purchase + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits, ETFs, or even try forex swing trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.