Four Ways to Buy Japanese Yen Under Taiwan Dollar Depreciation Pressure and the Best Timing

In December 2025, the NT dollar to Japanese Yen exchange rate reached 4.85, representing an accumulated appreciation of over 8% since the beginning of the year at 4.46. Amid rising global risk aversion and expectations of NT dollar depreciation, purchasing Yen has become more than just travel preparation—it has become an important option in asset allocation. However, many people have spent a significant amount on exchange rate spreads and handling fees due to choosing the wrong channels, equivalent to several cups of drinks. This article will analyze the four most practical ways to buy Yen today, helping you find the most cost-effective path.

Why Consider Buying Yen Now?

The Japanese Yen has long been regarded as one of the world’s three major safe-haven currencies. When market risks increase, large capital flows into Yen for protection. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% within a week, effectively buffering declines in global stock markets. For Taiwanese investors, buying Yen is not only a response to travel needs but also a hedge against Taiwan stock market volatility.

Additionally, expectations of interest rate hikes by the Bank of Japan have also driven Yen appreciation. Governor Ueda Kazuo recently made hawkish comments, raising market expectations of rate hikes to 80%, with a projected 0.25 bps increase to 0.75% at the December 19 meeting (a 30-year high), further supporting Yen’s value. Meanwhile, Japan’s fixed deposit rates have risen to 1.5-1.8%, offering investors stable income opportunities.

Best Timing to Buy Yen

Currently, the Yen exchange rate is in a relatively volatile range. In the short term, influenced by the US interest rate cut cycle, the Yen may face 2-5% volatility, especially if global arbitrage positions are unwound, potentially pushing the rate back to 155. However, medium- to long-term forecasts suggest Yen will trade below 150.

Experts recommend adopting a phased approach rather than a lump sum purchase. When the NT dollar to Yen rate drops below 4.80, buying in installments can effectively average costs and avoid single-point risks. In the second half of the year, Taiwan’s foreign exchange demand has increased by 25%, mainly driven by travel recovery and hedging needs.

Four Main Ways to Buy Yen

Method 1: Bank Counter Purchase of Yen Cash

This is the most traditional method. Bring NT dollars in cash to a bank branch or airport counter and exchange at the “cash selling rate.” Since cash rates are usually 1-2% worse than the spot rate, this method incurs higher costs.

For example, Taiwan Bank’s rate on December 10, 2025, was approximately 0.2060 NT$/Yen (about 4.85 Yen per NT$). Some banks charge fixed handling fees, ranging from no fee to 200 NT$.

Advantages: Safe, simple operation, full denominations (1,000, 5,000, 10,000 Yen), with staff assistance.

Disadvantages: Worse exchange rates, limited to bank hours (9:00-15:30 on weekdays), additional handling fees increase costs.

Estimated cost (NT$50,000): Loss of NT$1,500–2,000

Suitable for: Those unfamiliar with online operations or needing small, urgent cash exchanges (e.g., at the airport).

Method 2: Online Exchange and Cash Withdrawal at Counter or ATM

Use online banking or apps to convert NT dollars into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or foreign currency ATMs, but this incurs spread and handling fees (starting from NT$100 equivalent).

For example, E.SUN Bank’s app allows currency exchange and cash withdrawal with a fee equal to the difference between spot and cash rates, with a minimum of NT$100. This method suits investors observing exchange rate trends and buying in installments at lower points.

Advantages: 24/7 operation, no banking hours limit, allows averaging costs through multiple purchases, better rates.

Disadvantages: Need to open a foreign currency account first; withdrawal fees (around NT$5-100 cross-bank).

Estimated cost (NT$50,000): Loss of NT$500–1,000

Suitable for: Those experienced in foreign exchange, frequently using foreign currency accounts, and interested in fixed deposits or investments in Yen.

Method 3: Online Currency Conversion with Branch Pickup

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notification to the branch for pickup. Taiwan Bank and Mega International Bank offer this service, with options to reserve airport branch pickup.

Taiwan Bank’s “Easy Purchase” online currency conversion is fee-free (only NT$10 if paid via Taiwan Pay), with about 0.5% better rates. This is the best pre-departure reservation method, especially at Taoyuan Airport, which has 14 Taiwan Bank outlets (2 open 24 hours).

Advantages: Better rates, often no handling fee, can choose airport pickup, well-planned.

Disadvantages: Requires prior reservation (1-3 days), pickup during bank hours, branch cannot be changed.

Estimated cost (NT$50,000): Loss of NT$300–800

Suitable for: Travelers with a planned schedule who want to pick up cash at the airport.

Method 4: 24-Hour Foreign Currency ATM Instant Withdrawal

Use a chip-enabled bank card to withdraw Yen cash from foreign currency ATMs, supporting 24/7 operation and cross-bank withdrawals (NT$5 cross-bank fee deducted from NT$ account). Major currencies include Yen, USD, etc., but locations are limited (~200 nationwide).

SinoPac Bank’s foreign currency ATMs allow NT$ account withdrawals of Yen with a daily limit of NT$150,000, no exchange fee. Note that Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus).

Due to limited ATM locations and denominations, avoid emergency withdrawals at peak times (airports, shopping districts) to prevent cash shortages.

Advantages: Instant access, high flexibility, low cross-bank fee.

Disadvantages: Limited locations and denominations (fixed 1,000/5,000/10,000 Yen), cash may run out during busy periods.

Estimated cost (NT$50,000): Loss of NT$800–1,200

Suitable for: Those without time to visit banks or needing urgent cash.

Latest Comparison of Yen Exchange Rates at Banks

As of December 10, 2025, the cash selling rates and counter handling fees are as follows (subject to official bank info):

Post-Purchase Yen Asset Appreciation Paths

After acquiring Yen, instead of letting the funds idle without interest, consider stable income or growth investments. Here are four common options suitable for small-scale beginners:

Yen Fixed Deposit: Stable choice. Open an FX account at E.SUN or Taiwan Bank online, deposit Yen. Minimum NT$10,000 equivalent, current annual interest 1.5-1.8%.

Yen Insurance Policies: Medium-term holding. Purchase savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%.

Yen ETFs: Growth-oriented. For example, Yuanta 00675U tracks Yen index, can buy fractional shares via brokerage apps, suitable for periodic investment.

Yen Forex Trading: Direct trading of currency pairs like USD/JPY or EUR/JPY on forex platforms. Advantages include two-way trading and 24-hour operation.

Key Tips and FAQs

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

Cash rate is the buy/sell rate offered by banks for physical cash, with the advantage of immediate delivery; however, it’s usually 1-2% worse than the spot rate. The spot rate is the market rate for settlement within two business days, mainly used for electronic transfers, offering more favorable rates.

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

Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 can buy about 48,500 Yen. Using the spot rate (~4.87), it’s about 48,700 Yen, a difference of roughly 200 Yen.

Q: What do I need to prepare to buy Yen?

For counter purchase: bring ID + passport. For online reservation: also bring transaction notification. Large purchases over NT$100,000 may require source of funds declaration.

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

Starting October 2025, many banks have adjusted limits. CTBC, Taishin Bank, etc., allow NT$120,000–150,000 equivalent; E.SUN allows NT$150,000. Consider spreading withdrawals or using your own bank card to avoid cross-bank fees.

Summary

Yen has evolved from a simple “travel pocket money” to a tool with hedging and investment value. Whether for pre-purchasing for next year’s Japan trip or hedging against NT dollar depreciation, adopting a “phased purchase + post-purchase appreciation” strategy can effectively lower costs and maximize returns.

Beginners are advised to start with the simplest options like “Taiwan Bank online currency exchange + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or forex trading based on needs. This way, you can enjoy more cost-effective travel expenses and add a layer of protection to your assets amid global market fluctuations.