Want to exchange for Japanese Yen but your wallet is crying? An article explaining the 4 major exchange pitfalls + money-saving tips

Taiwan dollar depreciation, Japanese yen appreciation, December exchange rate has surged to 4.85 — This is a good time for traveling abroad or hedging allocations, but did you know? Just choosing the wrong exchange method can cost you an extra NT$1,500. Today, we’ll help you avoid the 4 common pitfalls of bank currency exchange.

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

Only halfway through 2025, the yen has already appreciated by 8.7% (from 4.46 at the start of the year to 4.85 now). This signals to investors that: the yen is no longer just for travel pocket money, but a hedging asset.

The Bank of Japan is about to raise interest rates (market expectations for December 19th to 0.75%, a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%. At the same time, the yen, as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), attracts capital inflows during market turbulence — during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, buffering a 10% stock market decline.

Exchanging for yen now is actually quite cost-effective, but only if you choose the right exchange method.

4 ways to exchange for yen, who eats your money the most?

Method 1: Bank counter cash exchange — Most expensive but safest

Bring cash NT$ to a bank or airport counter to exchange for yen cash. Simple to operate, but banks use the “cash selling rate” (1-2% worse than the spot rate), which means you pay more.

NT$50,000 exchange results in a loss of NT$1,500-2,000.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/yen (1 NT$ = 4.85 yen). Some banks also charge an additional NT$100-200 handling fee.

Suitable for: Urgent airport needs, older people unfamiliar with online banking.

Method 2: Online banking exchange + foreign currency ATM withdrawal — Balanced approach

Use the bank app to convert NT$ to yen at the “spot selling rate” (about 1% better than cash rate), deposit into a foreign currency account, then withdraw yen cash at an ATM with a chip card. 24/7 operation, supports interbank (only NT$5 fee).

NT$50,000 exchange results in a loss of NT$500-1,000.

Disadvantages: limited ATM locations (about 200 nationwide), cash shortages during peak times, fixed denominations (1,000/5,000/10,000 yen).

Suitable for: People without time to visit the bank, needing temporary cash.

Method 3: Online currency purchase + airport pickup — Most cost-effective

No need for a foreign currency account. Book online via Taiwan Bank or Mega Bank’s website, fill in currency, amount, pickup branch, and date. After remittance, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rate.

Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), suitable for pre-trip planning.

NT$50,000 exchange results in a loss of NT$300-800.

Suitable for: Planned travelers who want to withdraw directly at the airport.

Method 4: Traditional branch counter exchange — Most secure but slowest

Bring passbook and ID to the bank branch, verify, then exchange foreign currency. More steps, longer time, but safest.

Suitable for: First-time exchangers, those needing to open a foreign currency account, or larger amounts (over NT$100,000 requires declaration).

A quick table: How much yen for NT$50,000?

Based on Taiwan Bank’s rate on December 10, 2025 (cash selling rate 4.85):

NT$50,000 = 50,000 × 4.85 = 242,500 yen

Using the spot selling rate (about 4.87):

NT$50,000 = 50,000 × 4.87 = 243,500 yen

Difference of about 1,000 yen (equivalent to NT$200). Not much for NT$50,000, but for NT$100,000, it’s a 4,000 yen difference.

What to bring before exchanging for yen? (Should I bring my passbook?)

At the counter, you need to bring:

• ID card (must)
• Passport (recommended, for verification)
• Passbook (if you have a foreign currency account, can verify on the spot)
• Transaction notice (if booked online in advance)

For large amounts over NT$100,000: You may need to fill out a source of funds declaration form. Under 20 years old, need parental accompaniment and consent.

Foreign currency ATM withdrawal limits:

From 2025, most banks’ daily limits drop to NT$100,000-150,000. It’s recommended to withdraw in multiple transactions.

After exchanging for millions of yen, don’t leave it idle — 3 ways to grow your chips

Don’t let your yen sit idle without earning interest. Consider these options:

1. Yen fixed deposit: Stable, open online at E.SUN or Taiwan Bank, starting from 10,000 yen, annual interest rate 1.5-1.8%.

2. Yen insurance policy: Medium-term holding, Cathay or Fubon savings insurance, guaranteed interest rate 2-3%.

3. Yen ETFs (e.g., Yuanta 00675U): Growth-oriented, tracking yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging, annual management fee 0.4%.

Short-term risks include global arbitrage unwinding, yen may fluctuate 2-5%. It’s advisable to stagger purchases to avoid all-in exposure.

Common Q&A

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

Cash rate (Cash Rate) applies to physical cash transactions, usually 1-2% worse than the spot rate, but allows immediate cash exchange, easy to carry. Spot rate (Spot Rate) is used for electronic transfers and interbank settlements, settled T+2, more favorable, close to international market price.

Q. Why are foreign currency ATMs in Taiwan often out of cash?

Peak times (airports, before holidays) see concentrated withdrawals, and cash replenishment is slow. Planning ahead helps avoid inconvenience.

Q. How to trade yen intraday or swing?

Use forex trading platforms to trade USD/JPY or EUR/JPY 24/7, with long and short positions. Higher risk, leverage traps possible, so trade cautiously.

Final reminder

The yen is no longer just for travel pocket money but a hedging asset. Whether traveling or hedging, following the principles of “batch exchange” and “not letting the money sit idle” can minimize costs.

Beginners are advised to start with “Taiwan Bank online currency purchase + airport withdrawal” or “foreign currency ATM,” then move into fixed deposits or ETFs based on needs. This way, you can enjoy more cost-effective trips and add a layer of protection during global market turbulence.