Japanese Yen Exchange Strategy: 4 Tips to Minimize Costs, Same Principles Apply When Converting MYR to USD

Updated December 10, 2025: The NT$ to JPY exchange rate has reached 4.85, with a difference in exchange costs of up to 2000 NT$.

Are you preparing to travel to Japan or allocate hedging assets? Do you know how big the cost difference is when exchanging for Japanese yen? The same amount of 50,000 NT$, using different methods, can differ by as much as 1500-2000 NT$. This article summarizes all the exchange traps and the most cost-effective methods.

First, understand: Why exchange for Japanese yen?

The Japanese yen is not just “pocket money” for traveling abroad; it is also one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc).

Everyday needs are obvious: Japan still has a high cash usage rate (credit card penetration is only 60%), and travel, shopping, studying abroad all require yen. But the financial aspect is even more worth noting—Japan’s economy is stable, debt is low, and during market turbulence, funds often flow into yen as a safe haven. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, enough to buffer stock market declines. For Taiwanese investors, holding yen adds an extra layer of protection.

Additionally, Japan’s long-term ultra-low interest rate policy (0.5%) makes the yen a currency for arbitrage financing—international investors often borrow yen to buy higher-yielding USD (USD/JPY interest rate spread of 4.0%), similar to the logic of currency arbitrage like ringgit to USD—using exchange rate differences and interest rate spreads for profit.

4 exchange methods cost comparison

Many people only know to exchange at banks, but they don’t realize that just the exchange rate difference can cost several cups of bubble tea. Below is a comparison of actual costs for all feasible options (based on 50,000 NT$):

Method 1: Bank counter — the most traditional but most expensive

Bring NT$ cash to the bank or airport to exchange for yen notes. Simple operation, but using the “cash sell rate” (1-2% worse than spot rate), results in the highest cost.

For example, Taiwan Bank’s rate on December 10, 2025, is 4.85 (1 NT$ = 4.85 yen), but the spot rate is better at 4.87. Some banks also charge an additional 100-200 NT$ handling fee.

Advantages: Safe, full denominations, on-site assistance
Disadvantages: Worst exchange rate, highest fees, limited by business hours
Suitable for: Airport emergencies, elderly, those not comfortable online

Method 2: Online exchange with counter pickup — preferred by investors

Use bank app or online banking to convert NT$ to yen at the “spot sell rate” and deposit into a foreign currency account, then withdraw cash at counter or foreign ATM. The rate advantage is about 1%, but additional withdrawal fees apply (interbank 5-100 NT$).

After currency exchange via E.SUN Bank app, withdrawal fee equals the difference between spot and cash rate, starting at 100 NT$. This method is suitable for phased entry when the NT$/JPY rate is below 4.80, averaging costs over time.

Advantages: 24/7 operation, favorable rates, phased entry possible
Disadvantages: Need a foreign currency account, withdrawal fees apply
Suitable for: Experienced forex holders, planned holding, those wanting to buy yen deposits (annual interest 1.5-1.8%)

Method 3: Online currency exchange with direct withdrawal — the most cost-effective

No need for a foreign currency account. Simply book online on the bank’s website, select currency, amount, branch, and date. After completion, bring ID and transaction notice to the counter for pickup. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with Taiwan Pay, only 10 NT$), with a 0.5% favorable rate.

Especially suitable for pre-trip planning, with 14 Taiwan Bank branches at Taoyuan Airport (including 2 24-hour branches), allowing direct airport pickup.

Advantages: Better rates, often no fees, designated airport pickup
Disadvantages: Need to book 1-3 days in advance, branches cannot be changed
Suitable for: Well-planned travelers wanting direct airport withdrawal

Method 4: Foreign currency ATM — maximum flexibility

Use a chip-enabled debit card to withdraw yen cash at foreign currency ATMs. 24/7 operation, only 5 NT$ cross-bank fee. E.SUN Bank’s foreign currency ATMs allow withdrawal from NT$ accounts, with a daily limit of 150,000 NT$, no exchange fee.

There are about 200 ATMs nationwide, but the available denominations are limited (fixed at 1,000/5,000/10,000 yen). During peak times, cash often runs out. Plan ahead to avoid last-minute issues.

Advantages: Instant, 24/7, highly flexible, low cross-bank fees
Disadvantages: Limited locations, fixed denominations, possible cash shortages during peak times
Suitable for: No time for counter, urgent withdrawal needs

Is it really cost-effective to exchange yen now?

Answer: Yes, but phased approach is recommended.

The NT$/JPY rate is currently 4.85, up 8.7% from 4.46 at the start of the year, already yielding significant gains. In the second half of the year, Taiwan’s forex demand grew by 25%, mainly due to travel recovery and hedging needs.

However, yen volatility remains high. The US entering a rate cut cycle benefits the yen, but the Bank of Japan is on the verge of raising rates—recent hawkish comments pushed expectations of a rate hike to 80%, with a likely increase to 0.75% at the December 19 meeting (a 30-year high), and Japanese government bond yields hitting a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58; short-term may rebound to 155, but medium to long-term forecasts are below 150.

Investment perspective: Yen as a safe-haven currency is suitable for hedging Taiwan stock volatility, but short-term arbitrage closing may cause 2-5% fluctuations. Phased entry is advised, avoiding full conversion at once—similar to ringgit to USD arbitrage—dispersing timing risk.

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

Holding onto yen without action means giving up potential gains. Here are four allocation options suitable for different risk preferences:

Yen deposits (conservative): Deposit online into E.SUN/Taiwan Bank foreign currency accounts, starting from 10,000 yen, with annual interest rates of 1.5-1.8%

Yen insurance policies (medium-term hold): Cathay/Fubon savings insurance with guaranteed interest rates of 2-3%

Yen ETFs (growth-oriented): For example, Yuanta 00675U tracking yen index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging

Forex trading (swing gains): Directly trade USD/JPY or EUR/JPY, with zero commission, low spreads, long/short options, 24-hour trading, with small capital

While yen has safe-haven features, global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may still depress the exchange rate. For investment, yen ETFs with 0.4% annual management fee are cost-effective; for swing trading, forex offers real-time signals and stop-loss tools.

Common Q&A

Q. What’s the difference between cash exchange rate and spot rate?
Cash rate applies to physical cash transactions, with the advantage of immediate delivery but a 1-2% worse rate. Spot rate is used for electronic transfers, offering better rates but settled T+2. In short, cash is more expensive, account transfers are cheaper.

Q. How much yen do I get for 10,000 NT$?
Calculate using 【Yen amount = NT$ amount × exchange rate】. Using Taiwan Bank’s cash sell rate of 4.85, 10,000 NT$ ≈ 48,500 yen; with spot 4.87, ≈ 48,700 yen, a difference of about 200 yen (roughly NT$40).

Q. What should I bring for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. If booked online in advance, also bring transaction notice. Under 20 years old need parent accompaniment; amounts over 100,000 NT$ may require source of funds declaration.

Q. What’s the limit for foreign currency ATM withdrawal?
From 2025, most banks have adjusted daily limits to 100,000-150,000 NT$. For example, CTBC around 120,000 NT$, Taishin 150,000 NT$, E.SUN 150,000 NT$ (including debit). Use your bank card to avoid cross-bank fees; plan ahead during peak times.

Final reminder

The core principle of exchanging yen is simple: phased exchange + don’t leave the money idle after.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually move to deposits, ETFs, or swing trading based on needs. This approach makes traveling more cost-effective and adds a layer of protection during global market turbulence—this logic applies equally to ringgit to USD or any other currency allocation.

Check your accounts now and find the most cost-effective method with these 4 tips.