Is the TWD to JPY exchange rate hitting a new high? Analyzing the four major currency exchange methods—which one saves the most money?

The NT dollar to Japanese Yen exchange rate has reached 4.85, hitting a new annual high, and the enthusiasm for travel to Japan and Yen investments is once again rising. But what’s the most cost-effective way to exchange? Many think just going to the bank is enough, but they don’t realize that the exchange margin alone could cost hundreds more.

This article summarizes four practical currency exchange channels, comparing the latest rates and handling fees, so you can see at a glance which option suits you best. Whether for travel or investment, you can minimize costs.

Why is the NT dollar to Japanese Yen exchange rate worth paying attention to?

The demand for Yen in Taiwan is not only because Japan is fun but also involves practical needs for daily life and investment.

Travel and daily expenses — Shopping in Tokyo, skiing in Hokkaido, vacations in Okinawa still mainly use cash (credit card penetration is only 60%), and purchasing agents often need to pay directly in Yen. International students or working holidaymakers also exchange money in advance to avoid costs from sudden exchange rate fluctuations.

Hedging asset property — The Yen is one of the three major global safe-haven currencies (alongside USD and Swiss Franc). Japan’s economy is stable with low debt. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, effectively buffering stock market declines. For Taiwanese investors, when the NT dollar to Yen rate is bullish, holding Yen appropriately can hedge against Taiwan stock market volatility.

Arbitrage opportunities — The Bank of Japan maintains low interest rates (currently 0.75%), making Yen a financing currency. Many investors borrow Yen at low interest to buy higher-yield USD (the USD/JPY interest rate spread exceeds 4%). When risks increase, they close the position—classic arbitrage strategy.

Current NT dollar to Yen exchange rate: highest in five years

As of December 10, 2025, the NT dollar to Yen has hit 4.85, meaning 1 NT dollar can exchange for 4.85 Yen. At the start of the year, it was 4.46, a cumulative appreciation of 8.7%, a significant increase.

Demand for currency exchange increased by 25% in the second half of the year, mainly driven by travel recovery and increased hedging. The Bank of Japan Governor Ueda Kazuo recently adopted a hawkish stance, pushing up rate hike expectations to 80%, with a projected 0.25 basis point increase to 0.75% on December 19 (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, possibly testing 155 in the short term, but medium to long-term forecasts suggest it will stay below 150.

Should I exchange now? The answer is “yes, but in batches.” The Yen remains volatile, and exchanging all at once carries higher risk. Gradually entering allows averaging costs and seizing low points.

Four major currency exchange methods fully explained

Method 1: In-person cash exchange — The most traditional but most expensive

Bring NT dollar cash directly to a bank branch or airport counter to exchange for Yen cash. Simple to operate, but using the “cash selling rate” (1-2% worse than spot rate) results in the highest cost. Taiwan Bank’s rate as of December 10, 2025, is about 0.2060 NT$/Yen (1 NT$ = 4.85 Yen).

Advantages: Immediate pickup, denominations available (1,000/5,000/10,000 Yen), assistance from bank staff.

Disadvantages: Exchange margin, limited business hours (weekday 9:00-15:30), possible extra fees (some banks charge 100-200 NT$ per transaction).

Estimated cost (NT$50,000): Loss of NT$1,500-2,000.

Suitable for: Those unfamiliar with online operations, needing small amounts for urgent use (e.g., at the airport).

Mainstream bank cash selling rates and fees (2025/12/10):

• Taiwan Bank: 0.2060, free
• Mega Bank: 0.2062, free
• E.SUN Bank: 0.2058, 100 NT$/transaction
• Taipei Fubon Bank: 0.2069, 100 NT$/transaction

Method 2: Online currency exchange account — Better interest rates + flexible batching

Use bank app or online banking to convert NT$ into Yen and deposit into a foreign currency account, enjoying the “spot selling rate” (about 1% better than cash selling). If you need cash, withdraw in person or at foreign currency ATMs, but there are additional exchange margin fees (starting at NT$100).

This method is especially suitable for monitoring the NT$/Yen rate, entering in batches at low points (e.g., below 4.80). After exchange, Yen can also be invested in fixed deposits earning interest (currently 1.5-1.8% annually).

Advantages: 24/7 operation, batch entry for average cost, better rates, can combine with fixed deposits or ETFs.

Disadvantages: Need to open a foreign currency account in advance, extra fees for cash withdrawal (5-100 NT$ cross-bank).

Estimated cost (NT$50,000): Loss of NT$500-1,000.

Suitable for: Those experienced in forex, planning to hold Yen long-term or invest in Yen fixed deposits.

Method 3: Online currency exchange + airport pickup — Best for travel

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, present ID and transaction notice at the counter to pick up. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via TaiwanPay), with a 0.5% rate advantage. You can reserve pickup at Taoyuan Airport’s 14 locations (including 2 24-hour branches).

This is the best pre-departure booking method, saving on exchange margin and allowing direct cash pickup at the airport, avoiding city travel.

Advantages: Better rates, often no handling fee, convenient airport pickup, well-planned.

Disadvantages: Need to book 1-3 days in advance, limited by bank hours, branch cannot modify.

Estimated cost (NT$50,000): Loss of NT$300-800.

Suitable for: Well-planned travelers wanting to pick up cash at the airport; those with enough lead time.

Method 4: Foreign currency ATM withdrawal — 24/7 emergency solution

Use chip-enabled financial cards at foreign currency ATMs to withdraw Yen cash, operable 24 hours. Cross-bank withdrawals cost only NT$5 per transaction, no exchange fee. E.SUN Bank’s foreign currency ATMs allow withdrawal from NT dollar accounts, with a daily limit equivalent to NT$150,000.

Disadvantages include limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 Yen), and potential cash shortages during peak times, making it unsuitable for last-minute withdrawals.

Advantages: 24/7 instant withdrawal, flexible emergency use, low fees from NT$ accounts, low cross-bank charges.

Disadvantages: Few locations, fixed denominations, possible shortages at peak times, less flexible than in-person.

Estimated cost (NT$50,000): Loss of NT$800-1,200.

Suitable for: Those who cannot visit a branch, need urgent cash, or have nearby foreign currency ATMs.

Summary comparison of the four methods

Next steps after exchanging Yen: investment options

Yen should not just sit idle. After exchange, there are various allocation options.

Yen fixed deposit — The safest. E.SUN, Taiwan Bank offer foreign currency accounts, online deposits starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. Suitable for risk-averse investors.

Yen savings insurance — Medium-term holding. Cathay, Fubon Life offer Yen policies with guaranteed rates of 2-3%, locking in medium-term returns.

Yen ETFs (00675U, 00703) — Growth allocation. Yuanta 00675U tracks Yen index, can buy fractional shares via broker apps, suitable for regular investment, management fee 0.4% annually.

Forex trading (USD/JPY) — Swing strategy. Trade Yen pairs on forex platforms, zero commission, low spreads, long and short, 24-hour trading, suitable for short-term rate movements. Use stop-loss, take-profit, trailing stops, etc.

Risk warning: BOJ rate hikes favor Yen, but global arbitrage unwinding, geopolitical conflicts, or Taiwan Strait risks could depress Yen. Yen ETFs can diversify risk; swing trading requires careful leverage control.

FAQs

Cash rate vs spot rate difference?

Cash rate (Cash Rate) applies to physical cash, delivered immediately at banks, but usually 1-2% worse than spot rate. Spot rate (Spot Rate) is the forex market’s T+2 settlement rate, used for electronic transfers, more favorable but requires waiting. Generally, spot rate is more cost-effective, suitable for those not in urgent need of cash.

How much Yen for NT$10,000?

Based on Taiwan Bank’s rate on December 10, 2025, cash selling rate of about 0.2060 NT$/Yen, NT$10,000 can buy about 48,500 Yen. Using spot rate (~0.2053), about 48,700 Yen, difference of roughly 200 Yen (NT$40). Not huge, but significant for large exchanges.

What to bring for first exchange?

For in-person, bring ID + passport (foreigners bring passport + residence permit). For online reservation, also bring transaction notice. Large amounts (>NT$100,000) may require source declaration. Under 20, need parent’s consent and ID.

Foreign currency ATM withdrawal limit?

From 2025, bank limits are adjusted:

• CTBC: NT$120,000/day
• Taishin: NT$150,000/day
• E.SUN: NT$150,000/day (including debit)

Most bank cards have higher limits; cross-bank cards may be lower. Consider spreading withdrawals or using your bank’s card to avoid cross-bank fees.

Conclusion

With the NT dollar to Yen rate at 4.85 today, Yen is no longer just for travel pocket money but also a hedging and investment asset.

Whether traveling or allocating funds, following the principles of “batch exchange + not sitting idle after exchange” can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM emergency,” then transition into fixed deposits, ETFs, or small swing trades based on needs. This way, you save on travel costs and add layers of protection amid global market fluctuations.