How much can you save by exchanging Japanese Yen? Four channels tested and compared in practice—be careful not to lose 2,000 yuan in one go.

December 10, 2025, the NT dollar to Japanese Yen has surged to 4.85, appreciating 8.7% since the beginning of the year. Recently, many people are planning to travel abroad or invest in Yen, but did you know? Using the wrong method to exchange 50,000 NT dollars could cost you an extra NT$1,500.

We have tested the four most mainstream currency exchange methods and will tell you which ones are truly cost-effective and which ones could lead to losses.

Why should you exchange to Yen now?

This is not just a travel issue. The Yen is one of the three major safe-haven currencies. For Taiwanese investors, exchanging NT dollars to Yen adds an extra layer of hedge against Taiwan stock market fluctuations. Moreover, the Bank of Japan Governor Ueda Kazuo recently made hawkish comments, with an 80% expectation of interest rate hikes by December 19, and Japanese government bond yields reaching a 17-year high of 1.93%—all supporting Yen’s strength.

In the short term, the Yen exchange rate remains volatile. USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with further predictions of dropping below 150 in the medium to long term. For small investors, now is a good time to buy in batches.

Four ways to exchange NT dollars to Yen, with significant cost differences

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

Simply go to a bank or airport counter with cash NT dollars to exchange for Yen. It’s straightforward, but banks use the “cash selling rate” instead of the market rate, usually 1-2% worse than the spot rate.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/Yen (meaning 1 NT$ = 4.85 Yen). Some banks also charge an additional NT$100-200 handling fee. Exchanging NT$50,000 would result in a loss of NT$1,500-2,000.

Suitable for: Those unfamiliar with online operations or needing small cash amounts urgently.

Method 2: Online currency exchange then cash withdrawal — balanced approach

Use bank app or online banking to convert NT$ to Yen and deposit into a foreign currency account. Then, go to a counter or foreign currency ATM to withdraw cash. The “spot selling rate” here is about 1% better than cash exchange rate.

Advantages: 24-hour operation, ability to buy in batches. Disadvantages: withdrawal incurs exchange fees (from NT$100+). Total cost reduces to NT$500-1,000, a moderate level.

Suitable for: Those experienced in forex investment, wanting to buy in dips gradually.

Method 3: Online currency purchase, pick up at airport — smartest choice

No need to open a foreign currency account. Just fill in amount, branch, and date on the bank’s website, then pick up cash at the counter. Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rate.

Pre-arranged online before travel, pick up directly at the airport. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours). The lowest loss, only NT$300-800.

Suitable for: Well-planned travelers who want to save time and money.

Method 4: Foreign currency ATM withdrawal — convenient 24/7, watch for small amount limits

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash. Available anytime, cross-bank fee NT$5. However, this method has limitations—few locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 Yen), and potential stock shortages during peak times.

Key point: Adjusting small transfer limits. From October 2025, many banks have strengthened anti-fraud measures, reducing the daily limit for third-party digital accounts to NT$100,000. Latest regulations:

SinoPac’s foreign currency ATM allows NT$150,000 daily withdrawal from NT dollar accounts, no exchange fee. But note: Japan ATM withdrawal services will be adjusted by the end of 2025, requiring an international card (Mastercard/Cirrus).

Cash may run out during peak times (especially at airports). It’s recommended not to wait until the last minute. Total cost: NT$800-1,200.

Suitable for: Office workers with no time to visit banks or urgent needs.

Cost comparison of 4 methods — exchanging NT$50,000 to Yen

Is it really cost-effective to exchange Yen now?

Brief answer: Yes, but do it in batches.

Currently, NT$ to Yen is 4.85, compared to 4.46 at the start of the year, an appreciation of 8.7%. This is a good forex gain for Taiwanese investors, especially under NT$ depreciation pressure. We observe a 25% increase in exchange demand in the second half of the year, mainly driven by travel recovery and hedging needs.

As one of the three major global safe-haven currencies (alongside USD and CHF), Yen tends to appreciate during market turbulence. In 2022, during the Russia-Ukraine conflict, Yen appreciated 8% in a week while stocks fell 10%, creating a perfect hedge. But short-term risks include arbitrage unwinding, which could cause 2-5% volatility.

Strategy suggestion: Don’t exchange all at once; buy in 3-4 batches at different times to average the cost.

What to do after exchanging Yen? Don’t let your money sit idle

If you’re not in a rush to spend abroad, consider these four ways to grow your Yen:

1. Yen fixed deposit — most stable, starting from 10,000 Yen, annual interest rate 1.5-1.8%, available at E.SUN Bank and Taiwan Bank.

2. Yen insurance policy — medium-term holding, guaranteed interest rates of 2-3% from Cathay and Fubon Life.

3. Yen ETFs — track Yen index, such as Yuanta 00675U, available as fractional shares via broker apps, suitable for regular investment.

4. Forex trading — directly trade USD/JPY or EUR/JPY on forex platforms. Advantages: long/short positions, 24-hour trading, small capital required, suitable for short-term swings.

While Yen is a safe-haven, it also has two-way volatility. For investment purposes, Yen ETFs (like 00675U, with 0.4% annual management fee) are lower risk. For intraday or swing trading, forex trading is a classic way to capture exchange rate movements.

Common questions answered

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

Cash exchange rate is the bank’s buy/sell price for physical cash (bills and coins), settled immediately, but usually 1-2% worse than the spot rate. Spot rate is the foreign exchange market price for T+2 settlement, mainly used for electronic transfers, more favorable but requires waiting.

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

Using the formula: Yen amount = NT$ amount × current rate. Taiwan Bank’s cash selling rate on December 10, 2025, is about 4.85, so NT$10,000 ≈ 48,500 Yen. At the spot rate 4.87, it’s about 48,700 Yen, a difference of only 200 Yen (NT$40).

Q: What do I need to bring to exchange foreign currency?

For locals: ID card + passport; for foreigners: passport + residence permit; for companies: business registration documents. If pre-booked online, bring transaction notice. Under 20 years old need parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

Different banks have different rules. Usually, NT$120,000-150,000 per day with your bank card; other bank cards often have NT$20,000 per transaction. From October 2025, third-party digital accounts’ daily limit drops to NT$100,000. Plan ahead to avoid cross-bank fees or multiple withdrawals.

Final advice

Yen is no longer just travel “pocket money” but an asset with hedging and investment value. Whether traveling or hedging risks, following the principles of “batch exchange + don’t leave the money idle” can minimize costs.

Beginners are advised to start with “Taiwan Bank online currency exchange + airport pickup” or “foreign currency ATM,” then shift into fixed deposits, ETFs, or swing trading based on needs. This way, you’ll not only save on travel costs but also add a layer of protection during global market turbulence.