How to exchange Japanese Yen most cost-effectively? A practical comparison of 4 major currency exchange channels in April 2025

Is it really cost-effective to exchange for Japanese Yen now?

As of December 10, 2025, the NT$ to JPY exchange rate reached 4.85. Compared to 4.46 at the beginning of the year, the yen has appreciated by about 8.7%, making it a good timing for Taiwanese investors and travelers. According to the latest data, Taiwan’s foreign exchange demand in the second half of the year has increased by 25%, mainly driven by the recovery of the tourism industry and hedging needs.

The hawkish stance shift by the Bank of Japan has also become a key catalyst. The bank governor Ueda Kazuo recently signaled a rate hike, with market expectations of a 0.25 bps increase to 0.75% on December 19 (a 30-year high), and Japanese government bond yields have climbed to a 17-year high of 1.93%. Against this backdrop, the yen, as one of the world’s three major safe-haven currencies, has become more attractive.

But whether it’s cost-effective or not depends mainly on which currency exchange method you choose. The same NT$50,000, choosing the wrong channel could result in a loss of over NT$1,500.

How much do the 4 methods of exchanging for JPY differ in cost?

Method 1: Bank Counter Exchange — Most expensive but safest

Bring NT$ cash directly to a bank or airport counter to exchange for JPY cash. Simple to operate, but the cost is highest because banks use the “cash selling rate,” which is about 1-2% worse than the international market rate. Some banks also charge additional handling fees.

For example, Taiwan Bank’s rate on December 10, 2025, was approximately 0.2060 NT$/JPY (meaning NT$1 exchanges for 4.85 JPY). Other banks’ cash selling rates during the same period ranged from 0.2058 to 0.2069. Exchanging NT$50,000 at the counter is estimated to lose NT$1,500-2,000.

However, this method is most suitable for urgent airport needs or for those unfamiliar with online operations. Advantages include immediate cash receipt, safety, and full denomination availability.

Method 2: Online FX Exchange — Better rates but involves an extra step

Use bank app to convert NT$ to JPY online, transferring to a foreign currency account. This uses the “spot selling rate,” which is about 1% better than cash selling. If you want cash, you can withdraw at ATMs or counters, but additional handling fees (starting at NT$100) apply.

Overall costs range from NT$500-1,000, suitable for those with foreign currency accounts who want to hold JPY long-term. Advantages include installment entry, 24-hour operation, and the ability to buy at lower points for an average cost. The downside is the need to open an account first, and extra fees when withdrawing cash.

This method also opens the door for future investments—after exchange, you can directly transfer into JPY fixed deposits (currently with annual interest rates of about 1.5-1.8%).

Method 3: Online Currency Exchange with Airport Pickup — Reservation-based, most convenient

No need for a foreign currency account. Simply reserve online via the bank’s website: fill in the exchange amount, select pickup branch and date. After remittance, bring ID and transaction notification to the counter for pickup. Taiwan Bank and Mega Bank promote this service.

The biggest advantage is the ability to reserve pickup at airport branches—Taoyuan Airport has 14 Taiwan Bank locations, including 2 open 24 hours. Taiwan Bank’s “Easy Purchase” online currency exchange even waives handling fees (pay NT$10 via TaiwanPay), and offers about 0.5% better rates. Exchanging NT$50,000 is estimated to lose only NT$300-800.

Suitable for travelers with a planned schedule who want to prepare cash before departure. The downside is needing to reserve at least 1-3 days in advance, and pickup times are limited by bank hours.

Method 4: Foreign Currency ATM Withdrawal — Most flexible but limited points

Use a chip-enabled bank card to withdraw JPY cash from foreign currency ATMs, which operate 24/7. Cross-bank withdrawals cost only NT$5 in handling fees. For example, SinoPac Bank’s foreign currency ATM has a daily withdrawal limit of NT$150,000, with no currency exchange fee.

Exchanging NT$50,000 is estimated to lose NT$800-1,200. Advantages include anytime withdrawal, flexible operation, and cost savings from debiting from NT$ accounts. Disadvantages include only about 200 foreign currency ATMs nationwide, potential cash shortages during peak times (like airports), and fixed denominations (1,000/5,000/10,000 JPY).

Note: Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). It’s recommended not to wait until the last minute to withdraw, to avoid issues.

Cost and time comparison for exchanging NT$50,000 to JPY

After buying JPY, don’t let your money sit idle

Exchanging to JPY shouldn’t be the end; it’s the start of asset allocation. Here are 4 common ways to use JPY:

JPY Fixed Deposit: The most stable. Open a foreign currency account at E.SUN or Taiwan Bank, deposit online, starting from 10,000 JPY, with annual interest rates of 1.5-1.8%.

JPY Insurance Policy: Medium-term holding. Savings insurance products from Cathay or Fubon Life, with guaranteed interest rates of 2-3%.

JPY ETFs: Growth-oriented options. For example, Yuanta 00675U tracks the JPY index, and you can buy fractional shares via brokerage apps, suitable for regular dollar-cost averaging.

Forex Trading: Swing profits. Trade JPY currency pairs (like USD/JPY, EUR/JPY) on forex platforms, with long and short positions, 24-hour trading, suitable for experienced investors.

The BOJ’s rate hikes are positive for JPY, but global arbitrage unwinding or geopolitical risks still exist. For investment purposes, JPY ETFs can diversify risk, with an annual management fee of only 0.4%.

Must-read Q&A before exchanging for JPY

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

Cash rate is the buying/selling price for physical banknotes, suitable for travel currency exchange. The advantage is immediate delivery; the downside is a 1-2% rate difference. Spot rate is the electronic transaction price (T+2 settlement), more favorable but requires waiting. In simple terms: cash is more expensive, electronic is cheaper.

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

Use the formula: JPY amount = NT$ amount × current rate. On December 10, 2025, Taiwan Bank’s rate was 4.85, so NT$10,000 can exchange for 48,500 JPY (cash selling). Using the spot rate of 4.87, it’s about 48,700 JPY.

Q: What documents are needed for counter exchange?

Locals need ID + passport; foreigners need passport + residence permit. For company accounts, business registration is required. If pre-reserved online, bring transaction notification. Under 20 needs a parent’s accompaniment. Large exchanges (over NT$100,000) may require source of funds declaration.

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

From 2025, many banks have increased the limit to NT$100,000-150,000 per day. For example, China Trust’s card limit is equivalent to NT$120,000 daily; other banks depend on issuing bank rules. It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees.

Conclusion

The JPY is no longer just for travel pocket money; it has become an asset with hedging and investment value. Mastering the principles of “batch exchange + not leaving money idle after exchange” can lower costs and increase returns. Beginners are advised to start with Taiwan Bank’s online currency exchange or foreign currency ATMs, then gradually move into fixed deposits, ETFs, or swing trading. This way, you can enjoy cost-effective travel and add a layer of protection during global market fluctuations.