Japanese Yen Exchange Guide: 4 Channels Cost Comparison, Is Now the Right Time to Enter?

December 10, 2025, the Taiwan dollar has surged to 4.85 against the Japanese Yen. Over the past year, the Yen has appreciated by 8.7%, presenting both opportunities and challenges for those looking to exchange money. Traveling to Japan, purchasing on behalf of others, investing for hedging… different needs, but the core question remains: How to exchange most cost-effectively?

According to the latest statistics, Taiwan’s demand for foreign currency exchange in the second half of the year has increased by 25%, with the Yen accounting for the majority. But what many people don’t realize is that just choosing the wrong currency exchange channel can cost an extra NT$1,500 on NT$50,000. This article summarizes four of the most common currency exchange methods used by Taiwanese people, showing you real market rates.

First, look at cost differences: How much do you lose when exchanging NT$50,000?

Don’t rush to the bank yet—check this table first. For the same NT$50,000, choosing different channels can result in vastly different costs:

Conclusion: To save money, online remittance is the best choice; if cash is urgently needed, foreign currency ATMs can be used as a fallback.

Why is the Yen worth exchanging? From travel to hedging

Daily needs

• Travel expenses: Only 60% of Japanese merchants accept credit cards; cash remains mainstream. Shopping in Tokyo, skiing in Hokkaido, vacations in Okinawa almost all require cash.
• Purchasing on behalf of others and online shopping: Buying Japanese cosmetics, clothing, anime merchandise often requires direct Yen payments to agents or Japanese sellers.
• Studying abroad and working holidays: Long-term residents need to exchange currency in advance to avoid exchange rate fluctuations increasing costs.

Financial market perspective

The Yen is one of the world’s three major safe-haven currencies (USD, Swiss Franc, Yen). During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a week, buffering a 10% decline in the stock market— for Taiwanese investors, exchanging Yen can hedge against Taiwan stock risks.

Additionally, the Bank of Japan is on the verge of raising interest rates. Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), and Japanese government bond yields have hit a 17-year high of 1.93%. This will support the Yen exchange rate.

Where can you exchange money? Four detailed channels

1. Bank counter cash exchange—most traditional but most expensive

Bring cash NT$ to a bank branch or airport counter to exchange for Yen notes. Banks use the “cash selling rate,” which is 1–2% worse than the spot rate.

Taking Taiwan Bank’s rates on December 10, 2025, as an example:

• Cash selling rate: 1 Yen = NT$0.2060 (i.e., NT$1 = 4.85 Yen)
• Counter service fee: Free (but other banks may charge NT$100–200)

Comparison of bank rates and fees:

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

Disadvantages: Worst exchange rates, limited business hours (Weekdays 9:00–15:30), possible service fees.

When to use: Urgent at airport, uncomfortable with online methods, small temporary exchange.

2. Online exchange + counter or ATM withdrawal—balanced approach

Use online banking or app to convert NT$ to Yen at the “spot selling rate” (about 1% better than cash selling rate), deposit into a foreign currency account. If cash is needed, pick up at counter or withdraw via foreign currency ATM.

Example: E.SUN Bank app exchange

• Spot selling rate: approx. 4.87 (better than cash rate)
• Withdrawal fee: NT$100+ (based on rate difference)

Advantages: 24/7 operation, can buy in installments at lower costs, better exchange rate.

Disadvantages: Need to open a foreign currency account first, withdrawal fees apply. Cross-bank withdrawals cost NT$5–100.

When to use: For those experienced in forex investment, wanting to buy in installments; or to transfer into Yen deposits (annual interest 1.5–1.8%) or Yen ETFs (like 00675U).

3. Online remittance + airport or branch pickup—must-have for travel

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service.

Taiwan Bank “Easy Purchase” online remittance:

• Fee: Free (NT$10 if paid via Taiwan Pay)
• Exchange rate advantage: about 0.5%
• Airport locations: 14 Taiwan Bank branches in Taoyuan, 2 open 24 hours

Advantages: Better rates, often no fees, can reserve airport pickup, suitable for well-planned travelers.

Disadvantages: Need to book 1–3 days in advance, pickup during bank hours, cannot change branch once booked.

When to use: Well-planned trips, those wanting to pick up cash directly at the airport.

4. Foreign currency ATM withdrawal—emergency use

Use chip-enabled bank cards at foreign currency ATMs to withdraw Yen notes directly, available 24 hours and cross-bank. Deducts only NT$5 cross-bank fee from your NT$ account.

Example: Sinopac Bank foreign currency ATM

• Daily limit: NT$150,000
• Fee: Free (no exchange fee)
• Denominations: fixed 1,000, 5,000, 10,000 Yen

Advantages: Instant withdrawal, maximum flexibility, low cross-bank fee.

Disadvantages: Only about 200 ATMs nationwide, limited currencies, cash may run out during peak times.

When to use: No time to visit bank, sudden cash needs. Not recommended for last-minute rushes—may run out during busy hours.

Is it really cost-effective to exchange Yen now? Rate and timing analysis

Current situation:

• NT$ to Yen: 4.85 (as of December 10, 2025)
• Appreciation this year: 8.7%
• USD/JPY has fallen from 160 to 154.58; short-term may rebound to 155, long-term forecast below 150

Timing considerations:

The Yen is fluctuating within a range; avoid exchanging all at once. It’s better to do in installments, for these reasons:

1. BOJ rate hike support: 80% chance of raising to 0.75% on December 19, which will support the Yen.
2. Global arbitrage unwinding risk: If Fed stops rate cuts or reverses expectations, arbitrage trades may unwind, causing Yen to drop 2–5% short-term.
3. Geopolitical uncertainties: Taiwan Strait, Middle East conflicts may depress Yen.

Recommended strategy:

• Small amounts (for travel): use online remittance, hassle-free
• Moderate amounts (NT$50,000–NT$200,000): split into 2–3 times over 1–2 weeks, averaging costs
• Large amounts (for hedging): 4–6 times over 1–2 months, capturing lows

What to do after exchanging Yen? Avoid letting your money sit idle

Currency exchange is just the first step. Many people let their money sit after exchanging, losing potential interest income.

Conservative options: Yen fixed deposit

• Interest rate: 1.5–1.8% (E.SUN, Taiwan Bank)
• Minimum amount: 10,000 Yen
• Advantages: Risk-free, stable interest
• Disadvantages: Limited returns

Medium-term: Yen insurance policy

• Guaranteed interest: 2–3% (Cathay Life, Fubon Life savings insurance)
• Lock-in period: 3–5 years
• Advantages: Higher than fixed deposit
• Disadvantages: Low liquidity

Growth-oriented: Yen ETFs

• Target: Yuanta 00675U (Yen index)
• Features: Fractional shares available, management fee 0.4% annually
• Strategy: Dollar-cost averaging based on exchange rate trends
• Suitable for: Investors wanting to participate in currency fluctuations

Advanced: Forex swing trading

• Targets: USD/JPY, EUR/JPY
• Features: 24-hour trading, long/short, low commissions
• Risks: High leverage, double-sided volatility
• Suitable for: Experienced traders

Quick FAQs

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

Cash rate (Cash Rate) applies to physical cash and coins; banks use a worse rate (due to cash handling costs). Spot rate (Spot Rate) is the foreign exchange market price for settlement within 2 business days (T+2), close to international standards, usually 1–2% better.

Q. How much Yen can NT$10,000 buy?

Using Taiwan Bank’s cash selling rate of 4.85:

• NT$10,000 × 4.85 = 48,500 Yen

Using spot rate 4.87:

• NT$10,000 × 4.87 = 48,700 Yen
• Difference: 200 Yen (~NT$40)

Q. What to bring for counter exchange?

Taiwanese: ID + passport Foreigners: Passport + residence permit Company: Business registration Online reservation: Transaction notice

Note: Under 20 needs parental consent; amounts over NT$100,000 may require source of funds declaration.

Q. Limits for foreign currency ATM withdrawal?

Limits vary by bank (as of October 2025, many banks adjusted to prevent fraud):

Advice: Use your own bank card to avoid cross-bank fees; plan ahead during peak hours; spread withdrawals to prevent stockouts.

Final advice

Yen is no longer just pocket money for travel; it also serves as a hedging tool and investment asset. Whether you plan to visit Japan next year or want to hedge against the Taiwan dollar depreciation by allocating Yen assets, following the principles of “split exchange” and “don’t let your money sit idle after exchange” can minimize costs and maximize returns.

Beginner’s path:

1. Open a foreign currency account (any bank)
2. Use online remittance to buy at low points, reserve airport pickup
3. After exchange, allocate: 50% in fixed deposits, 30% in ETFs, 20% in swing trading

This way, you can enjoy your trip more cost-effectively and add a layer of protection during global market turbulence. Check each bank’s website for real-time rates and start planning now.