Did you choose the wrong way to exchange TWD to JPY and lose 1500? Understand the 4 major currency exchange channels in this article

The NT$ to JPY exchange rate has surged to the 4.85 threshold. Exchanging 50,000 NT$ could cost you an extra NT$800 to NT$2,000, depending entirely on your chosen method.

This year, the Japanese yen has appreciated by a total of 8.7%, and the demand for currency exchange among Taiwanese has grown by 25%. However, the vast majority are still using the most expensive methods.

Is it really time to exchange for JPY now?

First, the conclusion: It’s worthwhile, but with conditions.

As of December 2025, the NT$ to JPY rate is about 4.85, up 8.7% from 4.46 at the start of the year. More importantly, the Bank of Japan Governor Ueda Kazuo’s hawkish comments have pushed up rate hike expectations to 80%, with a projected 0.25 basis point increase to 0.75% on December 19 (a 30-year high), and Japanese government bond yields reaching a 17-year high of 1.93%.

USD/JPY has fallen from 160 at the start of the year to 154.58. In the short term, it may retreat to 155, but the medium to long-term trend is downward (expected below 150). For Taiwanese investors, this means that exchanging for yen is not only for travel but can also serve as a hedge against Taiwan stock market volatility.

Key reminder: There is a 2-5% risk of yen fluctuation (arbitrage trades may close out), so staggered currency exchanges are the way to go—don’t convert everything at once.

Four ways to exchange for yen, with significant cost differences

Using 50,000 NT$ as an example, different methods can result in losses ranging from NT$300 to NT$2000. Here’s a detailed breakdown:

Method 1: In-person cash exchange — Most expensive but safest

Bring NT$ directly to a bank or airport counter to buy yen in cash. Simple to operate, but uses the “cash selling rate,” which is 1-2% worse than the spot rate, plus possible handling fees, making it the most costly.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/JPY (i.e., 1 NT$ = 4.85 JPY). Some banks may charge extra fees.

Exchanging NT$50,000 in cash at the counter could cost an estimated NT$1500-2000.

Suitable for: Those unfamiliar with online methods, needing emergency cash at the airport, or small amounts.

Sample bank counter rates (2025/12/10):

Method 2: Online currency exchange + ATM withdrawal — A middle ground with lower fees

Via bank app or website, use “spot selling rate” (about 1% better than cash rate) to convert NT$ to JPY into a foreign currency account, then withdraw cash at the counter or foreign currency ATM. This allows monitoring exchange rates and entering in batches at low points (e.g., below 4.80).

ATM withdrawals incur exchange spread fees (around NT$100+), but overall costs are still lower than in-person exchange.

Exchanging NT$50,000 online could result in a loss of NT$500-1000.

Suitable for: Those experienced in forex investment, planning to hold yen long-term.

Drawback: Requires opening a foreign currency account first; withdrawal involves an extra step.

Method 3: Online currency settlement + airport pickup — The best pre-departure plan

No need for a foreign currency account. Fill in amount, currency, pickup branch, and date on the bank’s website. After transfer, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay via TaiwanPay for NT$10), with a 0.5% rate advantage.

Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours, making it especially convenient for travelers to pick up before departure.

Exchanging NT$50,000 online could cost NT$300-800 in losses.

Suitable for: Organized travelers who want to pick up cash directly at the airport.

Drawback: Needs 1-3 days of advance booking; pickup time limited by bank hours.

Method 4: 24-hour foreign currency ATM withdrawal — Fastest for emergencies

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash directly. 24/7 operation, with only NT$5 cross-bank fee. For example, E.SUN’s foreign currency ATMs allow NT$15,000,000 daily limit from a NT$ account, with no exchange fee.

About 200 ATMs nationwide, mainly in cities and airports. Important: Japan’s ATM withdrawal services will be adjusted by the end of 2025 to use international cards (Mastercard/Cirrus).

ATM denominations are fixed (1000/5000/10000 JPY). During peak hours (like at airports), cash may run out quickly—don’t wait until the last minute.

Exchanging NT$50,000 via foreign currency ATM could cost NT$800-1200.

Suitable for: Those with no time to visit banks or needing quick cash.

Major bank ATM withdrawal limits (latest 2025):

Comparison of exchange methods costs (NT$50,000):

Common Q&A

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

Cash rate (Cash Rate) is the rate banks use for physical cash buying/selling. It offers immediate delivery but is 1-2% worse than the spot rate, with higher costs due to fees.

Spot rate (Spot Rate) is the foreign exchange market’s T+2 settlement rate, used for electronic transfers, import/export, etc. It is more favorable and closer to international market prices.

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

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

Q: What documents are needed to exchange foreign currency?

Taiwanese citizens need ID card + passport; foreigners need passport + residence permit. For online reservations, also bring transaction notice. Under 20 requires a parent present; large amounts (over NT$10 million) may require source of funds declaration.

After exchanging for yen, don’t let your money sit idle

Once you have yen, consider these four ways to grow your assets:

1. Yen fixed deposit: Most stable, starting from 1万 JPY at E.SUN/Taiwan Bank, with annual interest rates of 1.5-1.8%.

2. Yen insurance policies: Medium-term holding, with Cathay/Fubon savings insurance offering guaranteed 2-3% interest.

3. Yen ETFs: Growth-oriented, e.g., Yuanta 00675U tracking the yen index, with 0.4% annual management fee, suitable for fractional investment.

4. Forex trading: Advanced, directly trading USD/JPY or EUR/JPY, with long/short positions, 24-hour trading, but higher risk.

Final reminder

The golden rule for exchanging yen: Stagger your exchanges + avoid leaving money idle. Don’t convert everything at once just because the rate looks good now, and don’t leave the yen idle without earning interest. As the NT$ depreciates, yen—one of the three major safe-haven currencies—can protect your assets and generate small income.

Beginners should start with the simplest options: “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM withdrawal,” then move into fixed deposits or ETFs based on needs. This way, you can enjoy cost-effective travel and add a layer of protection during global turbulence.