Japanese Yen exchange rate hits a new high of 4.85, 4 major currency exchange methods help you save 2000 yuan

December Yen Soars 8.7%! Is it time to exchange NT$ to JPY now?

In December 2025, the NT$ to JPY exchange rate hit a new high of 4.85, soaring 8.7% since the beginning of the year. Many want to take the opportunity to exchange for yen, but the question is—should you go to the bank in person or handle it via app online? For a NT$50,000 currency exchange, different methods can cost over NT$2,000 more. Let’s get this calculation clear.

Why is holding yen worthwhile? Not just for traveling to Japan

Many Taiwanese only think of yen in terms of “going abroad,” but the real story in the financial markets is much more interesting.

Travel perspective is easy to understand: Japanese merchants prefer cash (credit card penetration is only 60%), plus the needs for purchasing, studying abroad, or working holidays make yen a common currency.

Investment perspective is the key: Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). When stock markets crash or geopolitical conflicts escalate, capital floods into yen. Take the 2022 Russia-Ukraine war as an example: yen appreciated 8% in a week, while global stock markets fell 10%—in other words, holding yen is like buying insurance.

Even better, the Bank of Japan has maintained ultra-low interest rates (just 0.5%) for a long time, creating classic “arbitrage” opportunities: borrow yen at low interest, convert to high-yield USD investments, with a spread of up to 4%. When risks rise, just close the position by buying back yen. Exchanging for yen isn’t wasteful; it’s part of asset allocation.

Is now a good time to exchange? These three factors explain everything

Exchange rate trend: NT$ started the year at 4.46 and is now at 4.85—an impressive increase. But note—while the US is entering a rate-cut cycle, the Bank of Japan is raising rates—recent hawkish comments from Ueda and market expectations of a rate hike to 0.75% on December 19 (a 30-year high), with Japanese bond yields hitting 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58, and may fluctuate between 150-155 in the future.

Inflation and CPI calculation insights: CPI formula is 【CPI = (Total current prices ÷ Total base period prices) × 100】. The differing inflation trends in the US and Japan are fundamental factors driving the exchange rate. US inflation is easing month by month, Japan’s remains moderate—this “inflation scissor” supports the yen’s medium-term appreciation potential. In short, inflation expectations have changed the fundamentals, and the timing to exchange for yen has shifted from “wanting to travel” to “understanding investment.”

Market demand data: In the second half of the year, Taiwan’s currency exchange demand increased by 25%, driven by travel recovery and risk hedging. Bank ATMs running out of foreign currency cash at peak times show the demand is hot.

Conclusion: It’s a good time to exchange now, but don’t convert all at once. Gradually enter the market, spreading your purchases between 4.80-4.90 to lower average costs.

Four practical currency exchange methods—how to get the most yen for NT$50,000?

Forget the old idea that “banks = safest.” The cost difference among these four methods can be over NT$2,000.

Method 1: In-person cash exchange (traditional but costly)

Bring NT$ cash to the bank or airport and exchange on the spot. Using “cash selling rate” (1-2% worse than spot rate), plus bank handling fees of NT$100-200, results in the highest cost. Estimated loss: NT$1,500-2,000 for NT$50,000.

Suitable for: emergency at the airport, seniors who don’t use online banking. Not suitable for: strategic investors.

Method 2: Online currency exchange + ATM withdrawal (flexible)

Use bank app or online banking to convert NT$ into yen in a foreign currency account at the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, withdraw at a branch or ATM, incurring a currency conversion fee of NT$100-200. Estimated loss: NT$500-1,000.

Advantages: can buy in installments, 24/7 operation, better exchange rates. Disadvantages: need to open a foreign currency account, withdrawal fees apply.

Suitable for: experienced forex traders, long-term holders (paired with yen deposits offering 1.5-1.8% annual interest).

Method 3: Online currency conversion + airport/branch pickup (must for travel)

No need for a foreign currency account—just book online, specify amount and pickup location (e.g., Taoyuan Airport). Pay via TaiwanPay with NT$10 handling fee. Taiwan Bank’s “Easy Purchase” offers a 0.5% rate discount; 14 airport pickup points (including 2 24-hour locations). Estimated loss: NT$300-800.

Advantages: favorable rates, often no handling fee, convenient airport pickup. Disadvantages: need to book 1-3 days in advance, cannot change pickup location.

Suitable for: travelers with fixed schedules and clear departure dates.

Method 4: 24-hour foreign currency ATM withdrawal (fastest and most flexible)

Use a chip-enabled bank card at a foreign currency ATM to withdraw yen directly, with only NT$5 cross-bank fee. E.SUN Bank’s daily limit is NT$150,000 equivalent, no currency exchange fee. About 200 ATMs nationwide; cash may run out during peak times. Estimated loss: NT$800-1,200.

Advantages: 24/7, instant cash, minimal cross-bank fees. Disadvantages: limited locations, fixed denominations (1000/5000/10000 yen), cash shortages possible.

Suitable for: urgent needs, busy professionals who can’t visit the bank.

Currency exchange cost comparison table (based on December 2025 data):

Beginner’s recommended combo: use “online exchange + ATM”—pre-book NT$30,000 online, pick up at the airport; if needed, top up NT$20,000 via ATM. Cost-effective and flexible.

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

Many people exchange yen but leave it untouched, wasting the 0% interest rate. Here are four options:

Yen fixed deposit: Most stable. E.SUN/TAIWAN BANK offer foreign currency accounts starting from NT$10,000 yen, with 1.5-1.8% annual interest—triple the rate of NT$ deposits.

Yen insurance policies: Medium-term holding. Cathay/Fubon life’s yen savings insurance guarantees 2-3% interest, with principal protection and growth.

Yen ETFs (00675U, 00703): Growth-oriented allocation. Yuanta 00675U tracks yen index, with 0.4% annual management fee, can buy fractional shares via broker apps, suitable for dollar-cost averaging.

Yen forex trading: Advanced play. Trade USD/JPY or EUR/JPY directly, with zero commission, 24-hour trading, and two-way operation—ideal for short-term forex swings.

In the short term, yen may fluctuate 2-5% due to rate hike expectations; long-term, its safe-haven and interest rate advantages make yen a worthwhile asset to hold.

Quick FAQs

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

Cash rate applies to physical banknotes—due to storage and transportation risks, it’s worse (1-2% lower). Spot rate is for electronic transfers, T+2 settlement, closer to actual market cost. For savings, choose spot rate.

Q: How much yen can NT$10,000 buy?

Use 【Yen = NT$ amount × current rate】. At TAIWAN BANK cash selling rate 4.85, NT$10,000 ≈ 48,500 yen; at spot rate 4.87, about 48,700 yen—just 200 yen difference (NT$40).

Q: What to bring for in-person exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration; online booking + transaction notice. Under 20 needs parental consent; over NT$100,000 may require source of funds declaration.

Q: Are there limits on foreign currency ATM withdrawals?

From October 2025, most banks set daily limits around NT$120,000-150,000 equivalent; other banks follow their rules. It’s recommended to split withdrawals and use your own bank card to avoid NT$5 cross-bank fee each time. During peak times (like airports), cash may run out—plan ahead.

Final advice

Yen is no longer just “pocket money for travel”—it’s a hedge and asset allocation tool. Under NT$ depreciation pressure, shifting some funds into yen can hedge against Taiwan stock risks and benefit from Japanese rate hikes.

The key is: gradually exchange in installments + don’t leave your yen idle. Beginners can start with “Taiwan Bank online exchange + airport pickup” or “ATM withdrawal,” then move into deposits, ETFs, or forex trading as needed. This way, you not only enjoy cost-effective travel but also add a layer of protection during market turbulence.

Start planning now—gradually build your yen position before the end of December, and your future self will thank you.