Is now a good time to exchange Japanese Yen? Comparison of costs for 4 currency exchange methods + the fastest way to receive foreign currency

December 10, 2025, the NT dollar to Japanese Yen is about 4.85. People planning to travel abroad or hedge their investments are starting to get restless. But the question is: Is it really cost-effective to exchange yen now? How can I exchange to save the most money?

Is it worthwhile to exchange yen now? Timing analysis

Since the beginning of the year, the NT dollar has appreciated 8.7% against the yen (from 4.46 to 4.85). In other words, your current exchange rate gains are already significant. Especially with the NT dollar facing depreciation pressure, many investors are adopting a strategy of staggered purchases to hedge by gradually exchanging yen.

Latest data shows that Taiwan’s foreign exchange demand in the second half of the year has grown by 25%, mainly driven by travel recovery and hedging needs. The Bank of Japan Governor Ueda Kazuo recently issued hawkish comments, with market expectations of an 80% chance of a rate hike on December 19, possibly raising the rate to 0.75% (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%, and USD/JPY has fallen from the high of 160 at the start of the year to around 154.58 now.

Conclusion: Exchanging yen now is cost-effective, but the key is not to exchange all at once—do it in stages.

Practical comparison of 4 ways to exchange yen

Many think that exchanging yen just at the bank is enough, but even a small difference in the exchange rate can lead to a loss of several thousand NT dollars overall. We take NT$50,000 as an example to calculate the real cost of each method.

1. In-person cash exchange: safest but most expensive

Bring NT dollars directly to the bank or airport counter to exchange for yen cash. Simple to operate, but using the cash selling rate (1-2% worse than the spot rate), results in a total loss of NT$1,500-2,000.

Specific data (as of December 10, 2025, bank rates):

• Taiwan Bank: 0.2060 NT$/yen (no fee)
• E.SUN Bank: 0.2067 NT$/yen (NT$100 per transaction fee)
• Yongfeng Bank: 0.2058 NT$/yen (NT$100 per transaction fee)

Advantages: Safe, full denominations, assistance from staff
Disadvantages: Rate difference, limited business hours, possible fees
Recommended for: Urgent airport needs, those uncomfortable with online operations

2. Online exchange + counter or foreign currency ATM withdrawal: moderate cost + flexible

Use bank app or online banking to convert NT$ to yen, deposit into a foreign currency account (using about 1% better than spot rate), then go to the counter or foreign currency ATM to withdraw cash. Total loss is NT$500-1,000.

This method is ideal for forex investors, allowing staged entry at low exchange rates. Operates 24/7, no banking hours restrictions. Additional fees may apply when withdrawing cash (around NT$5-100 cross-bank fee).

Advantages: Better exchange rate, average cost over time, 24/7 operation
Disadvantages: Need to open a foreign currency account first, withdrawal fees
Recommended for: Frequent forex traders, long-term investors

3. Online currency exchange + airport branch pickup: most budget-friendly

No need for a foreign currency account. Simply fill in the currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notification to pick up. Taiwan Bank’s “Easy Purchase” online exchange has no fee (pay NT$10 via TaiwanPay), with a rate advantage of 0.5%, resulting in only NT$300-800 loss overall.

The best part is you can reserve to pick up foreign currency at Taoyuan Airport Taiwan Bank branches, with two branches open 24 hours. Book online the day before departure, pick up directly at the airport—no detours needed.

Advantages: No fee, good rate, specify airport pickup
Disadvantages: Need to make reservations (1-3 days in advance), limited pickup hours
Recommended for: Planned travelers who want to pick up foreign currency directly before departure

4. Foreign currency ATM withdrawal: fastest and most flexible

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash directly. 24/7 access, NT$5 cross-bank fee, with a loss of NT$800-1,200. Yongfeng Bank’s foreign currency ATMs have a daily limit of NT$150,000 and no exchange fee.

The only downside is limited locations (about 200 nationwide), and cash may run out during peak times. It’s recommended to go early to withdraw, rather than waiting until the last minute before travel.

Advantages: Instant foreign currency, flexible, low cross-bank fee
Disadvantages: Limited locations, fixed denominations, possible shortages during peak times
Recommended for: People with no time to visit banks, urgent needs

Summary of costs for 4 methods

How to save the most money? Best combo for beginners

Based on the comparison above, for beginners with a budget of NT$50,000-200,000, the most cost-effective approach is “online currency exchange + airport pickup” or “foreign currency ATM withdrawal.”

If you have plenty of time, online exchange is the top choice, with minimal loss and no fee. But note that online exchange requires reservations and can only be picked up at designated branches, so it’s less flexible.

If you need cash urgently, foreign currency ATMs are a lifesaver. Although the loss is slightly higher than online exchange, they operate 24/7, allowing you to withdraw foreign currency anytime—super convenient for last-minute travel.

The key point: Don’t foolishly run to the bank counter to exchange cash—that’s the most expensive way.

After exchanging yen, what’s next? Don’t let your money sit idle

After exchanging yen, don’t leave it idle without interest. Dividing the funds according to purpose is more cost-effective:

Travel: Just carry it with you or deposit into a local Japanese account

Investment options include four choices:

1. Yen fixed deposit: Stable, annual interest rate 1.5-1.8%, minimum 10,000 yen
2. Yen insurance policy: Savings insurance from Cathay or Fubon Life, guaranteed interest rate 2-3%
3. Yen ETFs (00675U, 00703): Growth-oriented, Yuanta 00675U tracks yen index, annual management fee 0.4%
4. Forex trading USD/JPY: Use platforms like Mitrade for swing trading, zero commission, low spread, 24/7 trading

The BOJ rate hikes are positive for the yen, but global arbitrage unwinding or geopolitical risks may cause short-term fluctuations of 2-5%. It’s advisable to stagger entry rather than go all-in.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?

Cash rate is used for physical cash transactions, usually 1-2% worse than the spot rate. Spot rate is used for electronic transfers, settled within two business days, and closer to international market rates.

Q: How many yen can I get with NT$10,000?

Using the formula: Yen amount = NT$ amount × current rate. At a cash selling rate of 4.85, NT$10,000 exchanges for about 48,500 yen.

Q: What ID do I need for in-person exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. For online reservations, also bring transaction notification. Large amounts (over NT$100,000) may require source of funds declaration.

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

Varies by bank. CTBC: NT$120,000/day, Taishin: NT$150,000/day, E.SUN: NT$150,000/day (including credit card). It’s recommended to split withdrawals or use your own bank card to save on cross-bank fees.

Conclusion

Yen is no longer just pocket money for travel but also a hedging tool against Taiwan stock market volatility. By mastering the principles of “staged exchange + investing after exchange,” you can minimize costs. For beginners, the most recommended starting points are “Taiwan Bank online exchange + airport pickup” or “24-hour foreign currency ATM,” then gradually move into fixed deposits, ETFs, or swing trading based on your needs. This way, you can enjoy cost-effective travel and add a layer of protection during global market turbulence.