NTD to JPY has reached 4.85! Is it a good time to exchange for Japanese Yen now? Analyzing the costs of 5 major methods

2025年12月已至，台幣兌日圓匯率攀升至4.85，創下近期高位。對於計畫赴日旅遊、出差或進行外匯投資的台灣人來說，現在成為換匯的關鍵時機。無論你持台胞證出差日本、準備辦理台胞證相關事宜，或單純想把台幣轉進日圓避險，選對換匯管道能直接省下數千元。我們逐一拆解現行5種換日幣的方式，讓你清楚看見每一筆成本去向。

Why is it worth exchanging for Japanese Yen? Not just for travel

The Japanese Yen plays one of the three major safe-haven currencies in the global financial market (the other two are USD and Swiss Franc), which means that during global market turbulence, funds often flow into Yen for hedging. During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% within a week, while the stock market dropped 10%—in other words, Yen holders gained natural hedging during the market crash.

Besides, Yen as an investment tool has another appeal: the Bank of Japan maintains ultra-low interest rates (currently only 0.5%), leading many hedge funds and international investors to borrow low-interest Yen and convert to higher-yield USD for arbitrage. The USD/JPY interest rate differential is as high as 4.0%, which is very attractive for yield-seeking investors.

For Taiwanese, exchanging for Yen is not just for shopping in Tokyo or skiing in Hokkaido, but also a relatively stable asset allocation choice amid the continuous depreciation of the NT dollar.

Practical comparison of 5 ways to exchange for Yen: cost differences over 2000 NT$

Many think exchanging Yen is just going to the bank for cash, but the differences in exchange rates and fees among various methods can cost you an amount equivalent to several cups of bubble tea— for 50,000 NT$ exchanged, the cost difference can even exceed 2000 NT$.

Method 1: Bank counter direct exchange—most traditional but most expensive

This is the most common method and also the highest cost. Using “cash selling rate” at the bank counter, which is about 1-2% worse than the spot rate, plus fixed handling fees charged by some banks, the total loss often reaches 1500-2000 NT$ (estimated on 50,000 NT$).

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 (NT$/JPY), meaning 1 NT$ ≈ 4.85 Yen. With different handling fee policies—some free, some 100-200 NT$ per transaction—the final amount received varies significantly.

Suitable for: Travelers unfamiliar with online operations, urgent needs like sudden cash at the airport.

Method 2: Online exchange, withdrawal at counter or ATM—an intermediate option

Via bank app or online banking, using “spot selling rate” (about 1% better than cash rate) to convert NT$ into Yen and deposit into a foreign currency account, then withdraw cash at counter or foreign currency ATM. Total cost is about 500-1000 NT$, saving about 50% compared to counter exchange.

This method suits investors observing exchange rate trends and buying in batches. When NT$/JPY drops below 4.80, you can buy gradually to average the cost. E.SUN Bank, Taiwan Bank, Mega International Bank support this service.

Suitable for: Those with forex investment experience, planning to hold Yen deposits or ETFs long-term.

Method 3: Online currency settlement, pick-up at designated branch—airport travelers’ favorite

No need to open a foreign currency account in advance. Fill in exchange info and pick-up location on the bank’s website, then bring ID to the counter to receive cash. Taiwan Bank’s “Easy Purchase” online settlement even waives handling fees (pay via TaiwanPay for only 10 NT$), with about 0.5% exchange rate advantage, costing only 300-800 NT$.

The biggest advantage is booking at 14 Taiwan Bank branches at Taoyuan Airport, including 2 open 24 hours. For travelers, collecting cash directly at the airport saves the hassle of preparing cash beforehand.

Suitable for: Planned travelers, those about to go abroad.

Method 4: Foreign currency ATM—withdraw anytime, anywhere

Use a bank foreign currency ATM to withdraw Yen cash, supporting 24-hour operation, with a cross-bank fee of only 5 NT$. E.SUN Bank’s foreign currency ATM has a daily withdrawal limit equivalent to 150,000 NT$, with no exchange fee, costing about 800-1200 NT$.

Disadvantages include limited locations (about 200 units nationwide), and cash often sold out during peak times. Also, Japan’s ATM withdrawal service will be adjusted by the end of 2025 to support only international cards (Mastercard/Cirrus).

Suitable for: Those who can’t visit counters easily, need urgent cash.

Method 5: Local Japanese ATM withdrawal—long-term residents’ choice

For those working, studying, or residing in Japan with a Taiwan passport, directly withdrawing Yen at Japanese ATMs using a Taiwanese bank card is the most convenient. No exchange fee, real-time international market rate. But ensure your Taiwan bank card supports international withdrawals and be aware of single transaction limits.

Is it really worthwhile to exchange Yen now? Timing guide

By the end of 2025, the NT$/JPY rate at 4.85 has appreciated 8.7% from the beginning of the year’s 4.46. It seems attractive. But whether to exchange now depends on your purpose and risk tolerance.

Travel use: No problem to exchange now. The Bank of Japan Governor Ueda Kazuo recently made hawkish comments, pushing up rate hike expectations to 80%, with a 0.25 basis point increase to 0.75% on December 19 (a 30-year high). Short-term support for Yen. However, USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with short-term fluctuations possibly returning to 155. Long-term forecast suggests below 150. Regardless of volatility, impact on travel expenses is limited.

Investment use: Recommend dollar-cost averaging. Yen’s dual-direction volatility risk comes from two sources—first, unwinding global arbitrage positions (when the US-Japan interest differential narrows, arbitrage funds cut positions), second, geopolitical conflicts (e.g., Taiwan Strait, Middle East tensions) may lead to Yen selling to buy USD. Gradual exchange can spread risk and avoid buying at the high point in one go.

After exchanging Yen, keep your money working for you

Don’t let your Yen sit idle without interest. Here are 4 options to generate returns:

Yen fixed deposit: Open a foreign currency account with a minimum of 10,000 Yen, annual interest rate 1.5-1.8%. Safe and steady, suitable for conservative investors.

Yen insurance policies: Cathay, Fubon Life offer Yen savings insurance with guaranteed interest rates of 2-3%, locking in medium-term gains.

Yen ETFs: Yuanta 00675U tracks Yen index, with 0.4% annual management fee, can buy fractional shares via broker apps, suitable for regular investment.

Forex trading: Use forex platforms to trade USD/JPY, EUR/JPY, etc., to catch short-term fluctuations. Advantages include long and short positions, 24-hour trading, with small capital.

Quick answers to common questions

Q: How much Yen can I get with 10,000 NT$?
Based on the December 10, 2025, Taiwan Bank rate of 4.85, about 48,500 Yen (cash selling) or 48,700 Yen (spot selling). Actual amounts vary with banks and exchange rate fluctuations.

Q: What ID do I need for counter exchange?
Taiwanese need ID card + passport; foreigners need passport + residence permit. If pre-booked online, bring transaction notice. Under 20 need parent’s consent and accompanying person.

Q: What’s the difference between cash rate and spot rate?
Cash rate is used for physical cash transactions, worse by 1-2%, paid on the spot; spot rate is for electronic transfers, more favorable but settled T+2.

Q: What is the daily limit for foreign currency ATM withdrawal?
Post-October 2025, limits are generally reduced to NT$100,000-150,000 equivalent per day per bank. Use your own bank card to avoid cross-bank fees (5 NT$ per transaction). During peak times (like airports), cash may run out early, so plan ahead.

Final advice

Yen has evolved from just travel pocket money to an asset with hedging and investment value. Follow the principles of “batch exchange” and “don’t leave it idle after exchange” to lower costs and maximize gains. Beginners can start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or swing trading based on needs. This way, you not only enjoy more cost-effective travel but also gain an extra layer of protection during global market turbulence.