Japanese Yen Exchange Guide: 3 Major Strategies to Spend Less Unnecessarily and Profit While Exchanging

The NT dollar to Japanese Yen has already reached 4.85, hitting a new high for the year. But did you know? Choosing the wrong method when exchanging 100,000 NT dollars could cost you an extra 2,000 NT dollars. Yen exchange has become a popular topic among Taiwanese people for traveling abroad and hedging risks, and many are even starting to compare strategies with other currencies like HKD and USD to seek the best allocation.

This article will directly tell you: whether it’s worthwhile to exchange yen now, how to do it most cost-effectively, and how to keep your money growing after the exchange.

Why rush to exchange for Yen?

Yen is no longer just for travel money. From daily emergencies to asset allocation, it has become an essential foreign currency tool for Taiwanese.

Everyday needs

Japan’s cash culture remains strong; most expenses during travel still require cash (credit card penetration is only 60%). Purchasing or shopping online for Japanese goods often requires direct yen payments. For those planning to study abroad or work holiday, exchanging currency in advance can lock in the exchange rate and avoid losses from sudden fluctuations.

Asset hedging

The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, while the stock market fell 10%—demonstrating its hedging power. For Taiwanese investors, holding yen can hedge against Taiwan stock market volatility, especially during rate hike cycles and rising geopolitical risks.

Exchange gains

At the start of the year, the NT dollar to Yen rate was about 4.46; now it’s 4.85, an appreciation of 8.7%. Compared to Asian currencies like HKD and SGD, the gains from exchanging yen are quite substantial. Recently, the Bank of Japan has taken a hawkish stance, with an 80% expectation of rate hikes, supporting the yen’s continued strength.

Is it worthwhile to exchange yen now? The answer is: only with skillful timing

Exchange rate aspect

The NT dollar continues to weaken, while the yen remains relatively strong. USD/JPY has fallen from 160 at the start of the year to around 154.58; short-term fluctuations may bring it to 155, but medium to long-term forecasts suggest below 150. This means locking in costs now makes sense.

Central bank aspect

The Bank of Japan (BOJ) Governor Ueda Kazuo recently made hawkish comments, boosting market expectations of rate hikes to 80%, with a projected increase of 0.25 basis points to 0.75% on December 19 (a 30-year high). The yield on Japanese government bonds has hit a 17-year high of 1.93%, further supporting the yen.

Market aspect

In the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly driven by travel recovery and hedging needs. However, short-term risks from arbitrage closing still exist, potentially causing 2-5% volatility.

Key advice: Exchange in installments rather than all at once. Enter the market in multiple rounds within the 4.80-4.90 range to effectively reduce risk.

The 3 best ways to exchange for Yen

Forget traditional over-the-counter currency exchange—that’s no longer the most cost-effective method. Based on actual costs, here’s the re-ranked options:

Path 1: Online currency settlement + airport pickup (most recommended)

How to do it

Fill in the currency, amount, pickup branch, and date on the bank’s official website. After completing the transfer, bring your ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online settlement and Mega Bank offer this service.

Cost estimate (for 50,000 NT dollars)

Taiwan Bank’s Easy Purchase online settlement is fee-free (pay only 10 NT dollars via Taiwan Pay), with an exchange rate advantage of about 0.5%, estimated loss of 300-800 NT dollars.

Main advantages

• Uses spot rate instead of cash selling rate (difference of 1-2%)
• Usually no or very low handling fees
• Can reserve airport branches for 24-hour pickup (Taoyuan Airport has 14 Taiwan Bank counters)
• Suitable for planned currency exchange before travel

Who’s it for

Travelers with a planned schedule who want to pick up cash directly at the airport.

Path 2: Foreign currency ATM withdrawal (most flexible)

How to do it

Use a chip-enabled bank card to withdraw yen cash from foreign currency ATMs, supporting 24-hour operation and interbank transactions. Deducts only 5 NT dollars cross-bank fee from your NT account.

Cost estimate (for 50,000 NT dollars)

SinoPac Bank’s foreign currency ATMs allow withdrawal of yen from NT accounts, with a daily limit of 150,000 NT dollars, no exchange fee, estimated loss of 800-1200 NT dollars.

Main advantages

• 24/7 instant withdrawal, highest flexibility
• Cross-bank fee only 5 NT dollars (cheaper than online exchange + counter pickup)
• No prior reservation needed
• Suitable for urgent needs

Who’s it for

Readers who don’t have time to visit a bank and need immediate cash.

Note

Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash may sell out during peak times. From late 2025, Japanese ATMs will require international cards (Mastercard/Cirrus).

Path 3: Online currency exchange + foreign currency account (best for investors)

How to do it

Use online banking or app to convert NT dollars into yen and deposit into a foreign currency account. Use spot selling rate (about 1% better than cash selling). If cash is needed later, withdraw at a branch or via foreign currency ATM.

Cost estimate (for 50,000 NT dollars)

E.SUN Bank app currency exchange followed by withdrawal of yen cash, with a minimum fee of 100 NT dollars on the spread, estimated loss of 500-1000 NT dollars.

Main advantages

• 24-hour operation, allows dollar-cost averaging
• Better exchange rates
• After opening a foreign currency account, you can directly invest in yen deposits (annual interest 1.5-1.8%) or buy yen ETFs
• Suitable for hedging Taiwan stocks and long-term holding

Who’s it for

Readers with foreign exchange experience, who frequently use foreign currency accounts, planning medium-term investments in yen.

Pitfall avoidance: Don’t use over-the-counter cash exchange anymore

Exchanging yen cash at counters is simple but costly. Using cash selling rates (about 1-2% higher than spot), plus fixed fees of 100-200 NT dollars at some banks, for 50,000 NT dollars, you could lose about 1,500-2,000 NT dollars.

Only consider this for small, urgent cash needs (like at the airport). Not recommended as your main method.

After exchanging yen: don’t let your money sit idle

Once you’ve exchanged yen, leaving it untouched means giving up potential annual returns of 1.5-3%. Here are 4 practical ways to keep your money growing:

1. Yen fixed deposit: steady growth

E.SUN Bank, Taiwan Bank, and others offer foreign currency accounts to deposit yen online. Minimum 10,000 yen, annual interest 1.5-1.8%. Suitable for capital preservation investors.

2. Yen insurance policies: medium-term locking

Cathay, Fubon life’s yen savings insurance, with guaranteed interest rates of 2-3%, terms usually 3-10 years. Suitable for medium-term capital allocation.

3. Yen ETFs: growth-oriented allocation

Yuan Da 00675U and other yen index ETFs tracking yen trends, available as fractional shares via broker apps. Management fee 0.4% annually, suitable for dollar-cost averaging.

4. Forex trading: capturing volatility

Trade USD/JPY or EUR/JPY directly on forex platforms. Advantages include two-way trading, 24-hour market, and small capital requirements. Suitable for experienced traders.

Quick reference data table

Bank Yen cash selling rates comparison (as of December 10, 2025)

Foreign currency ATM withdrawal limits (latest regulations)

Common misconceptions quick fix

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

Cash rate is for physical cash exchange, usually 1-2% higher (more expensive). Spot rate is the market rate for settlement within two business days, more favorable. In short: use cash rate for urgent needs, spot rate for planning.

Q: How much yen can 10,000 NT dollars buy?

Using Taiwan Bank’s cash selling rate of 4.85, 10,000 NT dollars get about 48,500 yen. With the spot rate (~4.87), about 48,700 yen—difference of roughly 200 yen (about NT$40).

Q: How to compare yen exchange with HKD?

If considering HKD allocation, the HKD/TWD rate is about 4.5:1, and JPY/HKD is about 0.041:1. Currently, yen has appreciated more than HKD, so exchanging yen offers greater potential gains.

Summary: The golden rule for exchanging yen now

Yen has become an asset combining hedging, returns, and liquidity. Whether for next year’s trip or asset hedging, applying the “installment exchange + invest after exchange” principle can minimize costs.

Beginners should start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits, ETFs, or forex trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection during market turbulence.

Next step? Save this article, and when NT dollar hits a new low or yen hits a new high, take it out and execute in stages as planned. Investment success isn’t about one big shot, but about continuous small decisions stacking up.