Yen exchange rate soars to 4.85? Learn these 4 tips for currency exchange to save 2000 yuan in fees at once

NTD Depreciation Pressure Turns JPY Investment into a New Favorite.

By December 2025, the NT dollar to Japanese Yen has surged to 4.85, an 8.7% appreciation since the start of the year, with currency exchange demand increasing by 25%. However, many people don’t realize that the cost difference between exchanging at a bank counter and online can be as high as NT$1,500 for the same amount. To get the most cost-effective exchange, the key isn’t “when to exchange,” but “how to exchange.”

This article summarizes the four most common JPY exchange channels in Taiwan, using actual rates to show you the differences. Whether for travel or investment, you can find the most economical option.

Why is now a good time to exchange JPY? The three layers of financial market logic

Many think exchanging JPY is just for traveling abroad. In fact, the Yen plays a more important role in the global financial market.

First layer: The status as a safe-haven asset

The Yen, along with the USD and Swiss Franc, is one of the world’s three major safe-haven currencies. During market turbulence, funds flow into safe-haven assets — during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, effectively buffering a 10% decline in the stock market. For Taiwanese investors, holding Yen is equivalent to insuring against volatility in Taiwan stocks.

Second layer: Arbitrage opportunities from ultra-low interest rates

The Bank of Japan has maintained an ultra-low interest rate (just 0.5%) for a long time, making the Yen a “funding currency.” Investors can borrow Yen at low interest, convert to higher-yield USD investments, with a US-Japan interest rate differential of up to 4.0%. When risks rise, they can close the position by buying back Yen, earning the interest spread.

Third layer: Practicality in daily life

• Travel expenses: Cash usage in Japan remains high (credit card penetration only 60%), with most shopping in Tokyo and Osaka accepting cash only.
• Purchasing and online shopping: Japan’s cosmetics, clothing, and anime merchandise buyers need to pay directly in Yen.
• Studying abroad and working holidays: Exchange currency in advance to avoid exchange rate fluctuations at the last minute.

Practical comparison of 4 currency exchange methods

Method 1: Bank counter exchange — the most traditional, highest cost

Bring NT dollar cash to a bank branch or airport counter to receive Yen cash on the spot.

Logic: Uses “cash selling rate” (1-2% worse than spot rate), plus fixed handling fee (NT$0-200), making it the most expensive.

For example, Taiwan Bank’s rate on December 10, 2025, was 1 Yen = NT$0.2060 (NT$1 = 4.85 Yen). Exchanging NT$50,000 would result in a loss of about NT$1,500-2,000.

Bank rate comparison (2025/12/10):

Pros: Safe, reliable, full denominations, staff assistance available

Cons: Rate spread, limited business hours (9:00-15:30), higher costs due to fees

Best for: Travelers unfamiliar with online methods or needing small cash at the airport urgently

Method 2: Online exchange + ATM withdrawal — flexible, suitable for staged entry

Log into bank app or online banking, convert NT$ to Yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% discount). Then withdraw cash at counters or foreign currency ATMs.

Logic: Spot rate is closer to international market price, but withdrawal incurs a fee (around NT$100+). Total cost for NT$50,000 is about NT$500-1,000.

E.SUN Bank app allows currency exchange and withdrawal, with handling fees based on the rate difference, minimum NT$100.

Pros: 24/7 operation, can buy in stages for average cost, better rates

Cons: Need to open a foreign currency account first, withdrawal fees apply

Best for: Experienced investors or those planning to buy Yen deposits (annual interest 1.5-1.8%) or Yen ETFs

Method 3: Online currency conversion + airport pickup — smartest, reservation-based, cheapest

No need for a foreign currency account. Fill in amount, pickup branch, and date online, then complete transfer. Bring ID and transaction notice to pick up at the counter. Taiwan Bank’s “Easy Purchase” service is especially convenient, allowing pickup at any of 14 Taoyuan Airport locations.

Logic: Online currency conversion is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rate. Exchanging NT$50,000 results in a loss of NT$300-800.

Pros: Best rates, often no handling fee, airport pickup option, 24-hour locations (some branches)

Cons: Need to book 1-3 days in advance, pickup during bank hours, branch location fixed

Best for: Planned travelers who want to pick up cash directly at the airport before departure

Method 4: Foreign currency ATM withdrawal — most immediate, limited locations

Use chips financial cards at foreign currency ATMs to withdraw Yen cash, available 24/7. Deduct NT$ from a NT dollar account with a NT$5 interbank fee, no exchange fee.

Logic: Fubon Bank’s foreign currency ATMs allow Yen withdrawal from NT accounts, with a daily limit of NT$150,000. Denominations are fixed (1,000/5,000/10,000 Yen), suitable for urgent needs. Cost for NT$50,000 is about NT$800-1,200.

Pros: Instant withdrawal, high flexibility, lowest interbank fee, 24/7 access

Cons: Only about 200 ATMs nationwide, limited denominations, cash may run out during peak times

Best for: Readers needing quick cash without time to visit banks

Cost quick reference table for 4 methods

Beginner tips: For budgets of NT$50,000-200,000, “online exchange + airport pickup” is most economical; for urgent needs, prioritize “foreign currency ATM”; for investment in Yen deposits or ETFs, use method 2 for staged entry.

Is it a good time to exchange now? Rate trend analysis

NT dollar to Yen now: 4.85 (year-to-date high)

Compared to 4.46 at the start of the year, Yen has appreciated 8.7%. For Taiwanese investors, currency gains are significant, especially under NT dollar depreciation pressure. Demand for exchange increased by 25% in the second half, mainly driven by travel recovery and hedging needs.

Short-term outlook

BOJ Governor Ueda Kazuo recently made hawkish comments, boosting rate hike expectations to 80%, with a 0.25 bps increase to 0.75% expected at the December 19 meeting (a 30-year high). Japanese government bond yields hit 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 now, likely to fluctuate around 155 in the short term, but medium to long-term forecasts suggest below 150.

Investment advice

• Travel: Exchange now for better rates, but stagger entries to avoid all at once
• Investment: Yen as a hedge against Taiwan stocks, suitable for risk management, but short-term risks include volatility of 2-5% during arbitrage closing
• Compared to AUD: AUD is more volatile, Yen is more stable; AUD yields higher but Yen risk is lower

After exchanging Yen: keep your money growing

Don’t let Yen sit idle with no interest. Consider steady income or growth investments.

Yen deposits
E.SUN Bank and Taiwan Bank offer foreign currency accounts, online deposits starting from 10,000 Yen, with annual interest rates of 1.5-1.8%.

Yen insurance policies
Cathay and Fubon Life sell savings insurance with guaranteed rates of 2-3%, providing stable medium-term returns.

Yen ETF investments
Yuanta 00675U tracks Yen indices, can be bought in fractions via brokerage apps, suitable for regular investment. Management fee is 0.4% annually, with diversified risk.

Yen swing trading
Trade USD/JPY or EUR/JPY on forex platforms to capture exchange rate movements. Advantages include two-way trading, 24/7 operation, and small capital requirements.

Common questions about currency exchange

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

Cash rate (Cash Rate) applies to physical cash transactions, with the advantage of immediate delivery but 1-2% worse than spot rate, plus higher handling costs.

Spot rate (Spot Rate) is the foreign exchange market’s T+2 settlement rate, mainly used for electronic transfers, offering better rates but requiring settlement time.

Q: How much Yen can I get with NT$10,000?

Calculation: Yen amount = NT$ amount × current rate (TWD/JPY)

Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 can buy about 48,500 Yen. With the spot rate (4.87), about 48,700 Yen, a difference of roughly 200 Yen (about NT$40).

Q: What documents are needed for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; company: business registration; online reservation also requires transaction notice. Under 20 needs parent’s accompaniment; large amounts (>NT$100,000) may require source declaration.

Q: What is the daily limit for foreign currency ATM withdrawal?

Limits vary by bank (as of October 2025, many banks strengthened anti-fraud measures):

It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees. During peak times (like airports), cash may run out quickly, so plan ahead.

Final tips

Yen is no longer just for travel “pocket money,” but also a safe-haven asset and small-scale investment vehicle. Whether traveling or hedging, mastering “staged exchange + don’t leave money idle” principles can minimize costs and maximize returns.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift to deposits, ETFs, or swing trading based on needs. This approach makes travel more economical and provides extra protection during global market turbulence.