How is it best to exchange Japanese Yen? An article explaining the 4 most common exchange methods used by Taiwanese people

Updated on December 10, 2025: The Taiwan dollar has surged to the 4.85 mark against the Japanese yen, with an annual increase of 8.7%. More and more people are looking to exchange for yen, but do you know that the price difference across different channels can be as high as 1500-2000 NT dollars?

Why is now a good time to consider exchanging for yen?

The yen is not just pocket money for travel; it has three practical values behind it.

Travel and Consumption Needs
Most Japanese attractions still primarily use cash (credit card penetration is only 60%), and shopping via purchasing agents, studying abroad, and part-time work all require yen. Taiwan’s currency exchange demand has grown by 25% in the second half of the year, driven mainly by the recovery of tourism.

Hedging Asset Property
The yen is one of the world’s three major safe-haven currencies alongside the US dollar and Swiss franc. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, successfully offsetting stock market declines. For Taiwanese investors, holding yen can provide protection during Taiwan stock market volatility.

Interest Rate Differentials and Investment Opportunities
The Bank of Japan’s Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of an 80% chance of a rate hike on December 19, pushing rates up to 0.75% (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%, and foreign currency fixed deposits are rising to 1.5-1.8%. Small investors can potentially earn steady returns through yen fixed deposits or ETFs.

Cost is everything: a real comparison of four exchange methods

Many think exchanging yen at the bank is simple, but choosing the wrong channel for the same 50,000 NT dollars can cost you an extra 1500 NT dollars. Based on the latest rates as of December 10, 2025:

Method 1: Bank Counter Cash Exchange (Most Expensive)

Handing cash NT dollars directly to the bank or at the airport to buy yen cash is the most traditional and costly method.

Banks use the “cash selling rate” (1-2% worse than the market spot rate). For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 NT$/yen (meaning 1 NT$ = 4.85 yen). Plus, some banks charge a handling fee of 100-200 NT$, resulting in a loss of 1500-2000 NT$ for 50,000 NT$ exchanged.

Comparison table (updated at 9:30 on December 10, 2025):

When to choose: Urgent airport needs, immediate cash delivery, unfamiliar with online operations.

Method 2: Online Currency Exchange with Cash Withdrawal (Moderate Cost)

Use bank app or online banking to convert NT$ to yen at the favorable “spot selling rate” (~0.2065 NT$/yen), then deposit into a foreign currency account. If cash is needed, withdraw at counter or foreign currency ATM, incurring exchange spread and handling fees (~100 NT$).

Compared to direct counter exchange, this method saves about 500-1000 NT$. Its advantage is observing the exchange rate, allowing you to buy in batches at low points (e.g., when NT$/yen is below 4.80), averaging the cost.

When to choose: Experienced in forex investment, planning to hold yen fixed deposits or ETFs long-term.

Method 3: Online Currency Conversion + Designated Branch Pickup (Best Value)

No need to open a foreign currency account. Simply fill in currency, amount, pickup branch, and date on the bank’s website. After online transfer, bring ID and transaction notification to pick up in person.

Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (using Taiwan Pay costs only 10 NT$), with about 0.5% favorable exchange rate, costing only 300-800 NT$ in losses. The biggest advantage is the ability to reserve pickup at Taoyuan Airport branches (14 locations, 2 open 24 hours), so you can collect before departure without extra trips to the bank.

When to choose: Well-planned trips, 1-3 days ahead, wanting to pick up at the airport.

Method 4: Foreign Currency ATM 24-Hour Withdrawal (Most Immediate)

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, available 24/7. Deducts only 5 NT$ cross-bank fee from your NT$ account, with no exchange fee. The daily withdrawal limit at E.SUN foreign currency ATMs is equivalent to 150,000 NT$.

Disadvantages: Limited ATM locations (~200 nationwide), fixed denominations (only 1000/5000/10000 yen), cash may run out during peak times.

When to choose: Emergency needs, no time to visit the bank, flexible withdrawal timing.

Summary of costs for 50,000 NT$ across four methods

Is it worth exchanging for yen now?

Exchange rate perspective: 4.85 has appreciated 8.7% from the beginning of the year (4.46). For Taiwanese investors, this is a significant gain. While the NT$ continues to weaken, now is not necessarily the lowest point, but the timing is relatively favorable.

Interest rate hike expectations: The BOJ is on the verge of raising rates. The USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now, with short-term fluctuations around 155. Expectation is for a move below 150 in the medium to long term. Yen appreciation is strong, offering good investment potential.

Risk warning: Short-term arbitrage closing may cause 2-5% volatility. It’s recommended to buy in batches to avoid a one-time full exchange. A strategy of “50,000-200,000 NT$ with online exchange + forex ATM mix” can lock in better rates while maintaining flexibility.

Quick FAQs

Q. How much yen can I get with 10,000 NT$?
Based on Taiwan Bank’s December 2025 cash selling rate of 4.85, about 48,500 yen. Using the spot rate of 4.87, about 48,700 yen. The difference is roughly 200 yen (about 40 NT$).

Q. What’s the difference between cash rate and spot rate?
Cash rate is the bank’s buy/sell rate for physical cash, usually worse than the market spot rate but allows immediate exchange. Spot rate is the international market rate for settlement within two business days (T+2), more accurate but requires electronic transfer.

Q. What do I need to bring for counter exchange?
Taiwanese nationals: ID card + passport; foreigners: passport + residence permit. If pre-booked online, bring transaction notification. Under 20 need parental consent and signature.

Q. Are there limits for forex ATM withdrawals?
Post-October 2025, banks adjusted limits. CTBC: equivalent to NT$120,000/day; Taishin: NT$150,000; E.SUN: NT$50,000 per transaction (including daily bill limit of NT$150,000). It’s advisable to split withdrawals or use your bank’s card to avoid cross-bank fees.

After exchanging yen, don’t just let it sit idle

Once you have yen, instead of letting it earn interest passively, consider further allocation.

Conservative: Yen fixed deposits at 1.5-1.8% annual interest, with E.SUN/Taiwan Bank opening foreign currency accounts starting from 10,000 yen.

Mid-term: Yen savings insurance with guaranteed rates of 2-3%, available from Cathay or Fubon Life.

Growth: Yen ETFs like Yuanta 00675U tracking yen index, with 0.4% annual management fee, can be bought as fractional shares via brokerage apps for diversification.

Advanced: Forex swing trading USD/JPY or EUR/JPY on trading platforms, with 24-hour buy/sell, requiring certain expertise.

Summary: Two core principles for smart yen exchange

First, choose the right channel to save money: exchanging 50,000 NT$ at the counter may cost an extra 2000 NT$, while online exchange can save up to 800 NT$. Based on your budget and timing, online exchange + airport pickup is the best for beginners.

Second, buy in batches rather than all at once: although yen is a safe-haven, it still fluctuates bidirectionally. Observe the rate, accumulate at lows, and avoid the risk of short-term arbitrage closing by full conversion.

Whether traveling abroad or asset allocation, mastering these two principles will minimize your exchange costs and maximize your returns.