Is it worth exchanging starting from 10,000 JPY? Understand the true costs of Taiwan's 4 major exchange channels all at once

In mid-December 2025, the NT dollar against the Japanese Yen broke through the 4.85 mark. Suddenly, more people want to exchange for Yen—some are eager to travel abroad, others want to hedge against NT dollar depreciation. But do you know? Choosing the wrong currency exchange method can cost you several cups of bubble tea just in exchange rate differences.

Why Now Is a Good Time to Exchange for Yen

Many think the Yen is just “pocket money” for travel. In fact, the Yen has long surpassed the scope of tourism spending and has become an asset with both hedging and investment value.

On a daily level, Japan still has about 40% of stores that only accept cash, and purchasing agents, Japanese forwarding services, studying abroad, and working holidays all require cash. More importantly, the Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, becoming a safe harbor for capital. For Taiwanese investors, allocating Yen can hedge against Taiwan stock market volatility.

In terms of timing, the NT dollar against Yen has risen from 4.46 at the start of the year to 4.85 now, an appreciation of 8.7% over the year. In the second half of the year, Taiwan’s foreign exchange demand grew by 25%, mainly driven by tourism recovery and hedging needs.

The Upcoming Bank of Japan Rate Hike: Short-term Exchange Rate Outlook

Latest developments are worth watching. BOJ Governor Ueda Kazuo recently made hawkish comments, pushing market expectations to 80%, with a rate hike of 0.25 bps to 0.75% at the December 19 meeting (a 30-year high), with Japanese bond yields reaching 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 now. In the short term, it may fluctuate around 155, but medium to long-term forecasts suggest it will stay below 150.

In other words, if your purpose is investment, the Yen still has support as a safe-haven asset. But in the short term, beware of 2-5% volatility from arbitrage unwinding. The most prudent approach is to buy in batches, avoiding a full exchange at once.

Four Practical Currency Exchange Channels Compared

Suppose you want to exchange NT$10,000 worth of Yen (about NT$20,600) or larger amounts. How big is the cost difference across different channels? Let’s analyze with real cases.

Option 1: Bank Counter Exchange (Most traditional but most costly)

Bring cash NT$ to a bank or airport to buy Yen cash. This is the most straightforward method, but using the “cash selling rate” typically costs 1-2% more than the spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 (NT$1 = 4.85 Yen). Some banks also charge handling fees.

Estimating for NT$50,000, the loss is around NT$1,500-2,000. This method is suitable only for small, urgent needs or emergency at the airport.

Option 2: Online currency exchange to foreign currency account (Preferred for investors)

Open a foreign currency account, then convert NT$ to Yen via bank app at the “spot sell rate” (about 1% discount). Decide whether to withdraw cash afterward. If withdrawing, a fee starting at NT$100 applies.

Advantages include 24-hour batch buying at an average cost, especially when the exchange rate is low (e.g., NT$ to Yen below 4.80). For NT$50,000, the loss is NT$500-1,000, suitable for those experienced with forex, planning to transfer Yen into fixed deposits or ETFs.

Option 3: Online currency exchange with airport pickup (Popular among office workers)

No need to open a foreign currency account in advance. Just fill in amount, branch, and date on the bank’s website, then complete remittance and pick up with ID and transaction notice at the branch. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rate.

Benefit: You can reserve pickup at Taoyuan Airport (14 locations, 2 open 24 hours), and get cash before departure without rushing to the bank. Loss is NT$300-800 for NT$50,000. Ideal for well-planned travelers.

Option 4: Foreign currency ATM withdrawal (Fast for emergencies)

Use a chip-enabled debit card at foreign currency ATMs to withdraw Yen cash, available 24/7. NT$ withdrawal from your NT$ account costs only NT$5 cross-bank fee (no exchange fee). No currency exchange fee either. Daily limit at Fubon Bank’s foreign currency ATMs is NT$150,000 equivalent.

Disadvantages: Only about 200 ATMs nationwide, especially at peak times (airports, department stores) cash may run out. Denominations are fixed at 1,000/5,000/10,000 Yen. For NT$50,000, loss is NT$800-1,200. Suitable for those who need quick cash without time to visit the bank.

Clear Cost Comparison: How to Save When Exchanging NT$50,000

Data sources: Various bank websites, updated December 2025.

Best Combo for Beginners: Online Exchange + Foreign Currency ATM

Market observation shows that beginners with a budget of NT$50,000-200,000 often make the mistake of “all at counter” or “all ATM.” The smartest approach is to mix.

Suppose you plan to travel at the end of December. Use online exchange now to reserve airport pickup (best rate, lowest cost), and keep the ATM as a backup for unexpected needs (e.g., wanting more cash before departure). This way, you lock in a good rate while maintaining flexibility.

How Much NT$ Can You Get for 10,000 Yen? Quick Exchange Rate Calculation

The formula is simple: Yen amount ÷ current exchange rate (JPY/TWD) = New Taiwan dollar amount

Using Taiwan Bank’s December 10, 2025, cash selling rate of 0.2060, NT$10,000 ÷ 0.2060 ≈ NT$20,600 (cash rate). With the spot sell rate of 0.2063, it’s about NT$20,400.

The difference seems small, but for NT$500,000 Yen, the gap between cash rate and spot rate exceeds NT$5,000. That’s why choosing the right method is crucial.

Let Your Money Work After Exchange: 4 Ways to Grow Your Yen

Many people just leave Yen idle after exchanging—such a waste. Based on risk preference, here are four advanced options:

Fixed Deposit: Open a foreign currency account with E.Sun, Taiwan Bank, etc., and deposit into fixed deposits online. Minimum NT$1,000 Yen, annual interest 1.5-1.8%. Suitable for risk-averse investors with stable returns.

Insurance Policy: Cathay, Fubon offer Yen savings insurance with guaranteed interest rates of 2-3%. Hold medium term (3-6 years), capital protected with interest.

ETF Investment: Yuanta’s 00675U, 00703, and other Yen-related ETFs track Yen indices. You can buy fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4%, moderate risk, good long-term growth potential.

Forex Trading: Trade USD/JPY or EUR/JPY directly on forex platforms like Mitrade, which offers zero commission and low spreads. Suitable for those with financial knowledge aiming to profit from exchange rate fluctuations.

Quick FAQs

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

Cash rate (Cash Rate) applies to physical cash transactions—handing over cash on the spot, but costs 1-2% more than the spot rate. Spot rate (Spot Rate) is used for electronic transfers, settled T+2, closer to international market prices, more favorable.

Q: What ID do I need to exchange foreign currency?

For counter transactions, bring ID + passport (foreigners bring passport + residence permit). For companies, business registration. Online reservations require transaction notices. Under 20 need parent’s consent; amounts over NT$100,000 may require source declaration.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

From October 2025, most banks set a limit of NT$120,000-150,000 per day. Our bank cards have higher limits; cross-bank cards depend on issuing bank. Consider splitting withdrawals or using your bank’s card to avoid cross-bank fees of NT$5 per transaction. During peak times (airports), cash may run out—plan ahead.

Summary: Batch Exchange + Flexible Strategies

Yen is no longer just “pocket money” for consumption. It’s essential for travel, hedging, and small-scale investment. By following the principles of “batch buying + active capital utilization,” you can minimize exchange costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer Yen into fixed deposits, ETFs, or try forex trading based on needs. This way, you not only enjoy cost-effective travel but also add a layer of protection amid global market fluctuations.