How to get the best deal when exchanging TWD to AUD? A complete guide to 4 AUD exchange methods

This year, the exchange rate between New Taiwan Dollars (NTD) and Australian Dollars (AUD) has been highly volatile. As the demand for studying abroad, working holidays, and overseas property investment in Australia increases, more and more Taiwanese are paying attention to how to exchange AUD most cost-effectively. We have compiled a complete comparison of the latest four currency exchange methods, whether for short-term travel, long-term study, or asset allocation, you can find the most suitable plan.

Why exchange to AUD?

When it comes to currency exchange, many people’s first reaction is USD or JPY, but AUD is quietly becoming a new favorite among Taiwanese. Besides travel and shopping, AUD also represents a new option for diversified global asset allocation.

Daily consumption: studying, working, vacationing

Studying and working holidays: The number of Taiwanese applying for Australian student visas and working holiday visas is increasing year by year, requiring early exchange of AUD to pay tuition and living expenses.

Overseas shopping and purchasing agents: Those who like Australian health products, cosmetics, and wines often pay directly in AUD through Australian official websites or purchasing agents.

Real estate and investment: The Australian property market is long-term optimistic, and some investors exchange AUD in advance to enter the market.

Financial aspect: The value of AUD as a commodity currency

Commodity currency attribute: Australia is a major exporter of iron ore, coal, and liquefied natural gas. AUD is highly correlated with commodity prices, possessing both hedging and growth characteristics.

Interest rate advantage: The Reserve Bank of Australia currently maintains a policy rate of 3.35%, significantly higher than Taiwan’s 1.875%, making it a popular choice for arbitrage and fixed deposits.

4 methods to exchange AUD in Taiwan

Many think that exchanging AUD just involves going to a bank counter, but in reality, the difference in exchange rates alone can cost hundreds or even thousands of NT dollars. We have personally summarized the latest four currency exchange channels, showing you actual numbers.

1. Bank counter or airport exchange for AUD

The most traditional method—carrying NT cash directly to a bank branch or airport counter to exchange for AUD cash. Simple and transparent, but with obvious disadvantages: using the “cash selling rate” is about 1-2% worse than the spot rate, plus some banks charge handling fees, making the overall cost the highest.

For example, Taiwan Bank’s cash selling rate is usually around 0.0225-0.0230 TWD/AUD, meaning 1 TWD can exchange for about 43-44 AUD. Adding handling fees of NT$100-200, exchanging NT$50,000 could lose NT$1,500-2,000.

Advantages: Safe and reliable, full denominations, staff assistance on-site.

Disadvantages: Worse exchange rate, limited business hours (Weekdays 9:00-15:30), possible additional fees.

Suitable for: Those unfamiliar with online operations or needing small, urgent exchanges (e.g., at the airport).

2. Online currency exchange, holding in foreign currency account

Using bank apps or online banking, convert AUD to a foreign currency account at the “spot selling rate” (about 1% better than cash selling rate). If cash withdrawal is needed later, use an ATM or counter to withdraw, which may incur additional fees (interbank NT$5-100).

This method’s advantage is the ability to enter the market gradually, observing exchange rate trends, accumulating AUD at low points, and averaging costs. Meanwhile, AUD in the foreign currency account can be directly transferred into Australian fixed deposits earning over 3% annual interest.

Advantages: 24-hour operation, relatively favorable exchange rates, cost averaging through multiple entries.

Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees.

Suitable for: Investors with forex experience planning long-term holdings of AUD.

3. Online currency exchange with designated branch pickup

No need for a foreign currency account. Simply fill in the exchange amount, select the pickup branch and time on the bank’s official website. After completing the online transaction, present your ID and transaction notice at the counter to receive cash. Taiwan Bank and Mega International Bank offer this service, and you can also reserve airport branch pickup, saving the hassle before departure.

Taiwan Bank’s online exchange usually has no handling fee or only NT$10, with an exchange rate advantage of about 0.5-1%. It’s the smartest pre-departure reservation method.

Advantages: Favorable exchange rates, many fees waived, can specify airport pickup.

Disadvantages: Need to book 1-3 days in advance, pickup time limited to bank hours.

Suitable for: Planning travelers, students, or businesspeople who want to withdraw directly at the airport.

4. Foreign currency ATM for 24-hour AUD withdrawal

Using a chip-enabled financial card at a foreign currency ATM to withdraw AUD cash, supporting 24-hour operation, with only NT$5 fee for cross-bank withdrawals. The number of locations is relatively limited (about 200 nationwide), but AUD is a mainstream currency often available in cash.

Many banks like E.SUN Bank, Taishin Bank support AUD withdrawals at foreign currency ATMs, with daily limits usually over NT$150,000, and no exchange handling fees.

Advantages: Instant withdrawal, high flexibility, deduct from NT dollar account with no extra fee.

Disadvantages: Limited locations, cash may run out during peak times, fixed denominations.

Suitable for: Urgent needs, readers without time for counters.

Cost comparison table of 4 exchange methods

Based on exchanging NT$50,000 to AUD, estimated costs and suitable scenarios:

Is it cost-effective to exchange NT$ now for AUD?

Currently, the NTD/AUD exchange rate fluctuates between 43-45. Compared to the beginning of the year, it has appreciated by about 5-7%, providing noticeable forex gains for Taiwanese investors. Especially under the environment of potential NT depreciation, exchanging AUD early for asset allocation is a popular choice.

Short-term outlook: The Reserve Bank of Australia maintains a hawkish stance, keeping rates high to support the AUD. However, the strong USD and global economic uncertainties remain variables.

Medium to long-term outlook: Australia’s economy remains solid, with strong demand for commodities, making AUD a long-term resilient currency. It is advisable to exchange gradually to avoid all at once.

Investment options after exchanging AUD

Once you have AUD, don’t let it sit idle. You can consider several steady income options:

1. AUD fixed deposit: Annual interest rate of 3-3.5%. Banks like E.SUN, Taiwan Bank offer foreign currency accounts starting from 10,000 AUD.

2. AUD insurance: Savings insurance with guaranteed interest rates of 2-3%, suitable for medium-term planning.

3. Australian ETFs: Funds tracking the Australian stock market or commodity indices, suitable for regular investment.

4. Forex trading: Trading AUD on regulated platforms to capitalize on rate fluctuations.

FAQs

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

Cash rate is the rate banks buy and sell physical banknotes and coins, suitable for travel exchange, providing immediate cash but at a worse rate (usually 1-2% worse). Spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers, closer to international market prices, but requires settlement time.

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

At current rates of 43-44, NT$10,000 can exchange for about 430-440 AUD (cash rate). Using the spot rate might get you 5-10 more AUD.

Q: What ID do I need for counter exchange?

Taiwanese need to bring their ID card and passport; foreigners should bring passport and residence permit. For large amounts (over NT$100,000), declaration of source of funds may be required.

Q: What’s the daily limit for ATM withdrawals in foreign currency?

Limits vary by bank, usually NT$120,000-150,000 per day for the same bank card, and lower for cross-bank withdrawals. It’s recommended to split withdrawals to avoid exceeding limits.

Summary

Exchanging NT$ for AUD is no longer just for students but a practical choice for diversified assets and hedging against NT dollar depreciation. By mastering a strategy of “gradual exchange + post-exchange investment,” you can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM withdrawal,” then transfer AUD into fixed deposits, funds, or long-term investments based on your needs. This way, your Australian trips become more cost-effective, and you gain an extra layer of protection during global market fluctuations.