Japanese Yen Exchange Guide: Comparing Costs Across 4 Major Channels, Is Now a Good Time to Exchange?

Currently, the NT$ to JPY exchange rate has fallen to 4.85, and the travel enthusiasm to Japan is rebounding. However, many people are still debating: Is it worthwhile to exchange for yen now? Which method is the most cost-effective?

In fact, exchanging for yen is not just driven by travel needs. From an asset allocation perspective, the yen, as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), has become an essential tool for small investors to hedge against Taiwan stock market risks amid the continuous depreciation pressure on the NT$. Plus, with the Bank of Japan on the verge of raising interest rates, the yen’s appreciation potential should not be underestimated.

We have compiled the latest exchange data from Taiwan’s five major banks, calculated the actual costs of four different methods, and will also tell you how to make your money work for you after exchanging for yen.

Why should you pay attention to the yen exchange rate now?

When it comes to foreign currency investments, many people instinctively think of USD but overlook the unique value of the yen.

Travel and daily life scenarios: Cash transactions in Japan still account for a high proportion (credit card penetration is only 60%). Whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, carrying yen cash remains mainstream. Purchasing goods online from Japan, studying or working in Japan—all require settlement in yen.

Financial market perspective: The yen has maintained an ultra-low interest rate (only 0.5%) for a long time, making it a “funding currency”—investors borrow low-interest yen, convert to higher-yield USD investments (the USD/JPY interest rate differential reaches 4%), and when market risks increase, they close positions and buy back yen to capture the spread. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%, fully demonstrating its safe-haven value.

For Taiwanese investors, exchanging for yen is not just for leisure but also a strategy to hedge exchange rate risks and diversify assets.

Taiwan’s latest exchange rate trend: Is now the low point?

As of December 10, 2025, the NT$ to JPY rate is about 4.85 (i.e., 1 NT$ = 4.85 yen), which has appreciated 8.7% from the beginning of the year at 4.46. In the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly driven by travel recovery and risk hedging.

But this is not an absolute low. Currently, USD/JPY is around 154.58. The Bank of Japan Governor Ueda Kazuo recently made hawkish comments, and market expectations for rate hikes have risen to 80%. It is expected that the December 19 meeting will raise rates by 0.25 basis points to 0.75% (a 30-year high), and Japanese government bond yields hit a 17-year high of 1.93%. In the short term, the yen may weaken slightly to 155, but medium to long-term forecasts suggest it will stay below 150.

Judgment: Now is a reasonable time to exchange, but not advisable to convert all at once. It is recommended to buy in batches, weekly or monthly, to average costs and avoid short-term volatility.

Benchmark of four major exchange channels’ costs

Many think they can only exchange at banks in person, but the difference between cash selling rates and spot rates can be 1-2%, which alone can cost you the price of a bubble tea. Based on the latest rates from five major banks in December 2025, we tested the real cost of exchanging 50,000 NT$.

Method 1: Bank counter cash exchange

Bring NT$ cash directly to a bank branch or airport counter to exchange for yen cash.

For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/JPY (i.e., 1 NT$ = 4.85 yen), Mega Bank 0.2062, CTBC 0.2065. Some banks charge additional handling fees (E.SUN, E.SUN, Cathay United, each 100-200 NT$).

Actual cost: Exchanging 50,000 NT$, you lose about 1,500-2,000 NT$. It requires matching bank hours (weekday 9:00-15:30). Suitable for urgent airport needs or those unfamiliar with online operations.

Advantages: Safe and reliable, staff assistance on-site, denominations available (1,000/5,000/10,000 yen).

Method 2: Online exchange + in-person withdrawal

Use bank app or online banking to convert NT$ into yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, withdraw in person or at ATMs, but this incurs a spread fee (starting around 100 NT$).

For example, E.SUN Bank, after online exchange, withdrawing cash incurs a fee equal to the difference between spot and cash rates, minimum 100 NT$.

Actual cost: Exchanging 50,000 NT$, losing about 500-1,000 NT$. 24/7 operation allows for batch purchases to average costs. Suitable for those with forex investment experience planning to hold yen long-term.

Advantages: Better exchange rates, high flexibility, can observe low points (e.g., NT$ to yen below 4.80) for multiple entries.

Method 3: Online currency settlement + airport pickup

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

Actual cost: Exchanging 50,000 NT$, losing about 300-800 NT$. You can specify pickup at 14 Taiwan Bank branches at Taoyuan Airport (2 open 24 hours), making it the best pre-departure booking method.

Advantages: Most favorable exchange rate, often no handling fee, direct airport pickup without visiting the bank.

Disadvantages: Requires 1-3 days reservation, pickup during bank hours only, branch cannot be changed.

Method 4: Foreign currency ATM withdrawal

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, supporting 24-hour operation and interbank transactions (only 5 NT$ fee from NT$ accounts). E.SUN Bank’s foreign currency ATM allows withdrawal of yen from NT$ accounts, with a daily limit of 150,000 NT$, no exchange fee.

Actual cost: Exchanging 50,000 NT$, losing about 800-1,200 NT$. Limited locations (~200 nationwide), cash may run out during peak times. Suitable for urgent needs or those who cannot visit a branch.

Advantages: Instant withdrawal, highest flexibility, lowest cross-bank fees.

Disadvantages: Limited locations and denominations (fixed 1,000/5,000/10,000 yen), cannot withdraw special denominations.

Cost summary table

For beginners, the best options are “Online exchange + airport pickup” or “Foreign currency ATM” for cost-effectiveness.

After exchanging for yen: 4 ways to make your money grow

Once you’ve exchanged for yen, don’t let it sit idle without earning interest. Depending on your risk appetite, here are four investment options.

Yen fixed deposit: Open an account with E.SUN Bank or Taiwan Bank online. Minimum 10,000 yen, annual interest rate 1.5-1.8%, suitable for conservative investors.

Yen insurance policy: Purchase savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%. Suitable for medium-term holding (3-6 years).

Yen ETFs: Yuanta 00675U, Cathay 00703 track the yen index. Can buy fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4% annually, balancing risk and return.

Forex swing trading: Trade USD/JPY, EUR/JPY currency pairs directly, with 24-hour two-way trading. Suitable for experienced traders wanting to capture short-term exchange rate movements. Benefits include low commissions, narrow spreads, and small capital requirements.

Recommended strategies: For hedging investments, yen ETFs are relatively controllable; for short-term gains, consider forex trading but control leverage. The BOJ rate hikes are positive for the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may temporarily suppress the exchange rate. Keep a close eye on central bank policies.

Essential knowledge for beginners: common questions about currency exchange

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

Cash rate (Cash Rate) applies to physical banknotes/coins, settled immediately, easy to carry, but usually 1-2% worse than the spot rate. Spot rate (Spot Rate) is used for electronic transfers, bank settlements, import/export, foreign currency accounts, settled T+2, and closer to international market prices. In short, if you want cash, accept a worse rate; if you can wait for settlement, enjoy better rates.

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

Based on Taiwan Bank’s December 10, 2025 rates, cash selling rate is about 4.85, so 10,000 NT$ ≈ 48,500 yen. Using the spot selling rate (~4.87), it’s about 48,700 yen, a difference of only 200 yen (about NT$40).

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

Taiwanese need to bring ID card + passport; foreigners need passport + residence permit. If pre-booked online, also bring transaction notice. Under 20, need parental consent and ID; large amounts (over NT$100,000) may require source of funds declaration.

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

As of October 2025, different banks have adjusted limits. CTBC allows NT$120,000 equivalent/day; Taishin NT$150,000; E.SUN’s own cards NT$150,000; others depend on issuing bank. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees. During peak times (airports), cash may run out, so plan ahead.

Q: How much is MYR (Malaysian Ringgit) in NT$?

If you also consider other Asian currencies, MYR is about 7 NT$ per MYR (subject to real-time rates). But for hedging, yen and USD are still the primary choices; MYR has lower liquidity and hedging functions.

Conclusion

The yen has evolved from a simple “travel pocket money” to a multi-functional asset for safe-haven and investment. Currently, the rate is reasonable, and Japan’s rate hikes are imminent, making it a good time to gradually build positions.

Follow the two principles of “batch exchange + not leaving money idle” to minimize costs and maximize returns. Beginners should start with “online exchange + airport pickup” or “foreign currency ATM,” then consider fixed deposits, ETFs, or small forex trades based on needs. Not only is it more cost-effective for travel, but it also provides an extra layer of protection during global market turbulence.