Japanese Yen Exchange Guide: Breakdown of 4 channels' costs, is it worth entering now?

The NT$ to JPY exchange rate has fallen to 4.85 (as of December 10, 2025), appreciating 8.7% from 4.46 at the beginning of the year. Compared to the fixed arbitrage mindset of HKD to TWD conversion, JPY investors face more options—should they exchange now or wait for a better rate? This article will analyze the cost differences among Taiwan’s four major currency exchange channels, helping you make every NT$ count.

Why is the Japanese Yen worth paying attention to? Not just for travel

Many think the yen is only for travel, but the financial markets have long proven its multiple values.

Strong hedging attribute: The yen is one of the world’s three major safe-haven currencies, alongside USD and CHF. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in just one week, effectively hedging against a 10% stock market decline. For Taiwanese investors, holding yen adds an extra layer of protection against Taiwan stock volatility.

Arbitrage mechanisms exist: The Bank of Japan maintains ultra-low interest rates (only 0.5%), making the yen a “funding currency.” Investors borrow low-interest yen, convert to higher-yield USD investments, with a US-Japan interest rate differential of up to 4.0%. When market risks rise, closing positions and buying back yen can lock in profits.

Practical consumption scenarios: Travel abroad, purchasing Japanese goods, studying or working abroad—yen demand persists. In the second half of the year, Taiwan’s currency exchange demand increased by 25% from the start of the year, mainly driven by travel recovery and asset hedging.

Cost comparison of four major currency exchange channels

Different exchange methods often have a 1-2% rate difference, meaning exchanging 50,000 NT$ could cost an extra 1,000-2,000 NT$. Here’s a detailed comparison:

Method 1: Bank Counter In-Person — Most traditional but most expensive

Bring NT$ cash directly to a bank branch or airport counter and complete the transaction at the “cash selling rate.” This method is straightforward but incurs the highest costs.

Taiwan Bank’s cash selling rate as of December 10, 2025: 1 JPY = 0.2060 NT$ (i.e., 1 NT$ = 4.85 JPY). Many banks also charge additional handling fees, ranging from free to NT$200 per transaction.

Estimated cost: 50,000 NT$ may result in a loss of NT$1,500–2,000

Advantages: Highest security, full denominations (1,000, 5,000, 10,000 JPY), assistance from bank staff.

Disadvantages: Limited to banking hours (weekday 9:00-15:30), large rate gap, handling fees may add up.

Ideal for: Travelers unfamiliar with online operations or needing small, urgent exchanges at the airport.

Method 2: Online Currency Exchange + In-Person Withdrawal — Suitable for long-term holding

First, convert NT$ to JPY via bank app or online banking into a foreign currency account (using “spot sell rate,” about 1% better than cash selling rate), then go to a branch or foreign currency ATM to withdraw cash. Withdrawal incurs a “spot vs. cash” exchange fee.

For example, after E.SUN Bank app exchange, withdrawal fee is the difference between two rates, starting from NT$100.

Estimated cost: 50,000 NT$ may result in a loss of NT$500–1,000

Advantages: 24/7 operation, ability to stagger entries for average cost, relatively favorable rates. Supports yen fixed deposits (annual interest 1.5-1.8%).

Disadvantages: Need to open a foreign currency account in advance; withdrawal fees apply (interbank NT$5–100).

Ideal for: Investors with forex experience, wanting to observe rates and enter gradually.

Method 3: Online Currency Purchase Reservation — Best before travel

No need for a foreign currency account. Fill in currency, amount, pick-up branch and date on the bank’s website. After transfer, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with airport branch reservations available.

Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours.

Estimated cost: 50,000 NT$ may result in a loss of NT$300–800

Advantages: Largest rate advantage, often no handling fee, direct airport pickup, suitable for planned travelers.

Disadvantages: Requires prior reservation (1-3 days), pickup time limited by bank hours, branches cannot be changed on short notice.

Ideal for: Travelers with fixed schedules who want cash at the airport.

Method 4: Foreign Currency ATMs — Most flexible for urgent needs

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, available 24/7 and for interbank withdrawals. Deducts directly from NT$ account, with a NT$5 interbank fee. Supports major currencies (JPY, USD, etc.), about 200 machines nationwide, uneven coverage.

Fubon Bank’s foreign currency ATMs allow withdrawal from NT$ accounts, with a daily limit of NT$150,000 and no exchange fee.

Estimated cost: 50,000 NT$ may result in a loss of NT$800–1,200

Withdrawal limits overview

Advantages: Instant withdrawal, maximum flexibility, low interbank fee.

Disadvantages: Limited locations, uneven distribution, fixed denominations (1,000/5,000/10,000 JPY), cash may run out during peak hours.

Ideal for: People with no time to visit banks or urgent yen needs.

Four methods at a glance

Is now a good time to exchange for JPY? Timing considerations

Current rate: 1 NT$ = 4.85 JPY, up 8.7% from the start of the year, yielding good returns.

Key factors:

The BOJ is on the verge of raising interest rates. Governor Ueda’s hawkish comments have increased market expectations to 80%, with a rate hike of 0.25bps to 0.75% at the December 19 meeting (30-year high), with Japanese bond yields reaching 1.93%, a 17-year high.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now. Short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest below 150.

Investment advice:

✓ Stagger entries are better than all-in exchanges (reduce exchange rate risk)

✓ Yen is a safe-haven, but short-term volatility of 2-5% exists on both sides

✓ Don’t wait until the last minute to exchange (peak foreign cash may sell out)

✓ After exchanging, don’t let the money sit idle—consider fixed deposits, ETFs, or other investment channels to increase returns

After exchanging yen, where should the money go?

Once you have yen, don’t let it sit idle. Here are four options suitable for small-scale beginners:

1. Yen fixed deposit — Annual interest 1.5-1.8%, minimum 10,000 yen, open online via E.SUN/Taiwan Bank, safe and low risk.

2. Yen insurance policy — Cathay or Fubon life savings insurance, guaranteed interest 2-3%, more cost-effective for medium-term holding.

3. Yen ETFs (00675U, 00703) — Yuanta 00675U tracks yen index, can buy fractional shares via broker app, suitable for dollar-cost averaging, annual fee 0.4%, higher growth potential.

4. Forex swing trading — Direct trading of USD/JPY or EUR/JPY on forex platforms, 24-hour trading, requires experience.

FAQs

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

Cash rate is the rate banks offer for physical bills/coins, for immediate cash delivery, convenient but usually 1-2% worse than spot rate. Spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers and cashless transactions, more favorable and closer to international market prices.

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

Calculation: JPY = NT$ × current rate. Using Taiwan Bank’s cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 JPY. Using spot rate 4.87, about 48,700 JPY, difference of 200 JPY (~NT$40).

Q: What documents are needed to exchange foreign currency?

For locals: ID + passport. For foreigners: passport + residence permit. Online reservations also require transaction notice. Under 20 need parental consent. Large exchanges (>NT$100,000) may require source of funds declaration.

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

Post-2025 regulations, most banks limit to NT$100,000–150,000 per day. It’s recommended to split withdrawals or use your own bank card to avoid NT$5 fee per transaction. Cash may run out during peak hours, plan ahead.

Final advice

Yen is no longer just “travel pocket money,” but an asset with hedging and investment value. To minimize costs and maximize returns, remember the dual principles of “staggered exchange + invest immediately after exchange.” Beginners can start with the simplest options like “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of asset protection during market turbulence.