Japanese Yen vs. Malaysian Ringgit: The 2025 Foreign Exchange Overview, Which One Is the Most Cost-Effective?

Amid the wave of NT dollar depreciation, many people are turning their attention to Japanese Yen and other Asian currencies. As of December 10, 2025, the NT dollar exchange rate against the Japanese Yen reached 4.85. But do you know? Choosing the wrong exchange method could cost you an extra NT$1,500-2,000 unnecessarily. We tested the four major channels in Taiwan—ATM foreign currency withdrawal, online currency exchange, bank counter exchange—and compiled the most cost-effective currency conversion strategies.

A Quick Comparison Table: 4 Ways to Exchange Yen and Their Costs

Key Finding: Exchanging NT$50,000 via online currency settlement can save NT$1,200-1,700 compared to bank counter exchange—equivalent to saving a month’s worth of bubble tea expenses.

Why Should You Exchange Yen Now?

The Japanese Yen is not just a travel currency. From hedging assets to arbitrage tools, Yen has become an essential asset for savvy investors.

One of the world’s three major safe-haven currencies

Japan’s economy is stable, and government debt is low, making Yen a safe-haven currency alongside USD and Swiss Franc. During the Russia-Ukraine conflict in 2022, Yen appreciated 8% in a single week, effectively hedging against stock market declines, which is especially attractive to Taiwanese stock investors.

In contrast, the Malaysian Ringgit, while an emerging Asian currency, lacks comparable safe-haven attributes, exhibits higher volatility, and is more suitable for short-term trade settlements rather than asset allocation.

BoJ Rate Hike Expectations Rise

Governor Ueda Kazuo recently made hawkish comments, pushing rate hike expectations to 80%. A 0.25 basis point increase to 0.75% is expected on December 19 (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58; it may rebound to 155 in the short term, but medium to long-term forecasts suggest below 150, indicating room for Yen appreciation.

NT dollar Facing Strong Depreciation Pressure

Since the start of the year, NT dollar against Yen has appreciated 8.7% (from 4.46 to 4.85). For Taiwanese, depreciation of NT dollar means that exchanging Yen now is more cost-effective than waiting a year. In comparison, the Ringgit does not face similar appreciation pressure.

The 4 Most Cost-Effective Ways to Exchange Currency

Method ①: Bank Counter Direct Exchange (Traditional but Expensive)

Bring cash to a bank or airport, sell NT dollars at the bank’s selling rate to get Yen cash. Simple and quick, but the most expensive method.

Exchange Rate Gap: Cash selling rate about 0.2060 NT$/Yen, 1-2% worse than the spot rate. Plus some banks charge handling fees (NT$100-200), so NT$50,000 will cost about NT$1,500 more.

Suitable for: Urgent airport needs, small amounts (below NT$20,000), elderly unfamiliar with online operations.

Method ②: Online Currency Exchange + Foreign Currency Account Withdrawal (Most Flexible)

Use bank app to transfer NT$ into a foreign currency account, sell at the spot rate (with 1% discount), then withdraw cash at the counter or foreign currency ATM as needed.

Advantages: 24/7 operation, allows batch entry to average costs, especially effective when exchange rate is below 4.80. Supported by E.SUN Bank, Taiwan Bank, Mega International.

Additional costs: Withdrawal fees (around NT$100+), cross-bank transfer fee (NT$5).

Suitable for: Regular foreign currency account users, those monitoring exchange rates, investors planning Yen deposits or ETFs.

Method ③: Online Settlement + Airport Pickup (Most Cost-Effective)

No need for a foreign currency account, just book online on the bank’s website, specify the airport branch for pickup. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service.

Why cheapest: Favorable exchange rates, no handling fee (NT$10 for Taiwan Bank), and can reserve at one of 14 Taoyuan Airport branches (including 2 24-hour branches), pick up before departure.

Disadvantage: Must book 1-3 days in advance; pickup location cannot be changed.

Suitable for: Travelers with fixed itineraries, those who want to settle all at once before departure, strategic investors.

Method ④: Foreign Currency ATM (Most Immediate)

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen, supported 24/7, interbank operation, with a single transaction fee of NT$5.

Limitations: About 200 units nationwide, fixed denominations (1,000/5,000/10,000 Yen), daily or single transaction limits. For example, SinoPac Bank’s foreign currency ATM has a daily limit of NT$150,000 with no exchange fee.

Risks: Cash may run out during peak times (e.g., before long holidays). Plan ahead.

Suitable for: People who don’t have time for counter exchange, urgent needs, flexible withdrawal requirements.

Yen vs Ringgit: Investment Attribute Comparison

Under NT dollar depreciation pressure, many consider both Yen and Ringgit. But their investment logic differs:

Suggested allocation: Under NT dollar depreciation, core holding 60-70% Yen, up to 20-30% Ringgit for higher interest.

After Exchanging Yen, Let Your Money Work

Once you have Yen, instead of letting it sit idle with zero interest, consider:

Yen Fixed Deposit (1.5-1.8%) — Most stable. E.SUN Bank, Taiwan Bank offer foreign currency accounts starting from NT$10,000, ideal for lazy wealth management.

Yen ETFs (00675U, 00703) — Long-term growth. Yuanta 00675U tracks Yen index, with 0.4% annual management fee, low minimum investment, suitable for dollar-cost averaging.

Yen Insurance Policies — Medium-term locking. Cathay, Fubon Yen savings insurance with 2-3% guaranteed interest, suitable for 3-5 year funds.

Forex Swing Trading — Advanced. Trade USD/JPY, EUR/JPY on forex platforms like Mitrade, offering zero commission, low spreads, with stop-loss, take-profit tools. Benefits include two-way trading, 24-hour market, suitable for risk-tolerant investors.

FAQs

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

Cash rate is the rate banks offer for physical cash, delivered immediately but 1-2% worse than the international market. Spot rate is for settlement within two business days via electronic transfer, more favorable but requires T+2 settlement.

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

As of December 10, 2025, Taiwan Bank’s rate is 4.85, so NT$10,000 can buy about 48,500 Yen (cash sell). Using spot rate (4.87), about 48,700 Yen, difference NT$40 (roughly NT$40).

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

Varies by bank. CTBC: NT$120,000 per day; others like Taishin: NT$150,000; E.SUN: NT$150,000 per day (including card transactions). Post-2025 regulations may lower limits to NT$100,000-150,000; consider splitting withdrawals or using your own bank card to avoid cross-bank fees.

Q: What to bring for counter currency exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. For online booking, bring transaction notification. Under 20: accompanied by parent; over NT$100,000: may need source of funds declaration.

Summary: Two Key Rules for Smart Currency Exchange

Yen is no longer just for travel pocket money but a safe-haven and investment asset. Under continuous NT dollar depreciation, exchanging now is more advantageous than waiting a year.

Rule 1: Dollar-cost average. Don’t exchange all at once; when NT$ to Yen drops below 4.80, buy in batches to minimize average cost.

Rule 2: Don’t just leave it idle after exchange. Immediately move Yen into fixed deposits, ETFs, or forex trading to generate interest and add a layer of protection during global market fluctuations.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then upgrade based on needs. This way, traveling becomes more cost-effective, and in an era of NT dollar depreciation, you can protect your assets wisely.