A must-read for Japanese yen investors: The most cost-effective exchange plan revealed for 2025

December 2025, the Taiwan dollar to Japanese yen exchange rate surged to 4.85, hitting a yearly high. Many people are taking this opportunity to buy yen, whether for next year’s Japan travel or for asset allocation and hedging. But did you know? Choosing different exchange channels can result in cost differences of over 1,500 NT dollars—equivalent to wasting a big meal.

This article will thoroughly explain the most practical yen exchange tips within five years, helping you pay less unnecessary tax.

Why is now the right time to exchange yen?

Market Background

This round of yen appreciation is no coincidence. The Bank of Japan’s latest policy shift is hawkish—Governor Ueda Kazuo recently made strong remarks, and the market expects a rate hike to 0.75% on December 19 (a 30-year high). Meanwhile, the US has entered a rate cut cycle, and the US-Japan interest rate differential has gradually narrowed from 4.0% at the start of the year, causing arbitrage trades borrowing low-interest yen and investing high-interest USD to unwind, pushing the yen higher.

USD/JPY has fallen from 160 to 154.58, and Japanese bond yields hit a 17-year high of 1.93%. What does this mean for Taiwanese investors?

Triple Value

1. Travel Use: Merchants in Tokyo, Osaka, Hokkaido still mainly use cash (credit card penetration only 60%), so early currency exchange is needed.

2. Hedging: Yen is one of the world’s three major safe-haven currencies (along with USD and Swiss franc). It can be used as a hedge during Taiwan stock market volatility.

3. Investment Returns: Yen fixed deposits offer annual interest rates of 1.5-1.8%, and yen ETFs track index fluctuations. Forex trading can capture short-term swings.

According to market data, Taiwan’s yen exchange demand increased by 25% in the second half of 2025, mainly driven by travel recovery and increased hedging needs.

In-depth comparison: 4 practical exchange channels

Different methods of exchange vary in exchange rates, fees, and time costs. Using 50,000 NT dollars as an example, let’s analyze each.

Option 1: Traditional counter exchange—convenient but most costly

How it works
Bring cash NT dollars to a bank counter or airport for exchange, paying on the spot with yen cash.

Cost breakdown
Banks use “cash selling rate,” which is 1-2% worse than the spot rate. For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/yen (1 NT$ = 4.85 yen). 50,000 NT$ can be exchanged for about 242,500 yen. Some banks also charge an additional 100-200 NT$ handling fee.

Overall loss: 1,500-2,000 NT$

Suitable for: urgent airport needs, last-minute requirements, unfamiliar with online methods

Bank exchange rates quick reference (2025/12/10)

Option 2: Online currency exchange + airport pickup—best value

How it works
Reserve exchange via bank website or app, no need a foreign currency account, specify branch (e.g., airport) for cash pickup on a designated date. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service.

Cost breakdown
Using “spot selling rate,” which is about 0.5-1% better than cash selling rate. Paying NT$10 via Taiwan Pay for online exchange, no handling fee. 50,000 NT$ can be exchanged for about 243,500 yen, roughly 1,000 yen more than counter exchange.

Overall loss: 300-800 NT$

Tips

• Need to book 1-3 days in advance
• Taoyuan Airport has 14 Taiwan Bank counters, 2 open 24 hours
• Pickup only during bank hours
• Once chosen, cannot change branch on the day

Suitable for: planned trips, well-prepared travelers, those wanting to pick up cash directly at the airport

Option 3: Foreign currency ATM—instant and flexible but limited in amount

How it works
Use chip-enabled debit/credit card at foreign currency ATM to withdraw yen cash, available 24/7, cross-bank withdrawal fee only NT$5.

Cost breakdown
Deduct from NT$ account, no forex fee, but rate depends on ATM’s quote at that time. E.SUN’s foreign currency ATM limit is NT$150,000 per day; others like CTBC have their own limits. Cost for 50,000 NT$ is about 800-1,200 NT$.

New regulations
From October 2025, many banks will strengthen anti-fraud measures, reducing daily digital account limits to NT$100,000. Japan ATM withdrawal services will be adjusted by end of 2025, requiring international cards (Mastercard/Cirrus).

Suitable for: urgent needs, no time to queue, 24-hour service required

Option 4: Online exchange + counter withdrawal—ideal for yen investors

How it works
Use online banking app to convert NT$ to yen and deposit into a foreign currency account (using spot rate), allowing ongoing observation of rate fluctuations and phased entry. When cash is needed, withdraw at counter or ATM, with extra handling fees.

Cost breakdown
Better exchange rate (spot), but cash withdrawal costs an extra NT$100-200. If just holding in a foreign currency account for investment (like yen fixed deposits or ETFs), no withdrawal needed, lowest cost.

Suitable for: experienced forex investors, planning yen fixed deposits or ETF investments, not needing immediate cash

Core advice: two golden rules

Rule 1: Phased entry, average cost

Yen short-term fluctuation range is 2-5%. Recommend entering 3-5 times, spaced 1-2 weeks apart. If you exchanged yen earlier this year at about 4.46, and now at 4.85, it has appreciated 8.7%. This indicates a strong upward trend. But don’t exchange all at once—leave room for phased buying.

Rule 2: After exchange, keep earning

Yen fixed deposits offer 1.5-1.8% annual interest. Depositing 100,000 yen for a year earns an extra 1,500-1,800 yen. Or invest in yen ETFs (like Yuanta 00675U, management fee 0.4% annually), with monthly investments of around NT$1,000, diversifying risk. Forex trading USD/JPY, EUR/JPY can also be used for short-term swings.

Yen exchange rate comparison: with euro

Not only yen is worth watching. How much is 1 euro in NT$? Currently about NT$30-31. Compared to the 4.85 yen rate, euro exchange rate is much higher. But euro is more volatile, with higher European economic uncertainty, making yen a safer hedge. Beginners are advised to start with yen and USD.

What to do after getting yen?

Option 1: Yen fixed deposit—risk-free return
Open a foreign currency account, with a minimum of 10,000 yen, annual interest 1.5-1.8%. Suitable for low-risk, steady growth.

Option 2: Yen insurance policy—medium-term lock-in
Cathay, Fubon Life offer yen savings insurance, with guaranteed rates of 2-3%, typically 3-5 years. Suitable for medium-term funds.

Option 3: Yen ETFs—growth-oriented allocation
Yuanta 00675U tracks yen index, can buy fractional shares via broker app, starting from NT$1,000. Suitable for dollar-cost averaging and short-term fluctuation tolerance.

Option 4: Forex trading—capture swings
Trade USD/JPY, EUR/JPY on forex platforms, 24-hour buy/sell, small capital can operate. Suitable for experienced traders seeking high returns, but highest risk—set stop-loss.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate is used for physical cash transactions, usually 1-2% worse than spot. Spot rate is used for T+2 electronic transfers, closer to international market price.

Q: How much yen for 10,000 NT$?
At 4.85 rate, about 48,500 yen. Using spot rate 4.87, about 48,700 yen.

Q: What to bring for counter exchange?
ID card + passport (for locals) or passport + residence permit (for foreigners). If booked online, bring transaction notice. Under 20 need parent accompaniment; over NT$100,000 need source declaration.

Q: Limits for foreign currency ATM withdrawal?
Yes. Varies by bank: CTBC etc. NT$120,000/day, Taishin NT$150,000/day, E.SUN NT$50,000 per transaction (daily NT$150,000). RMB per transaction/day not exceeding NT$20,000. Consider splitting withdrawals or using your own bank card.

Q: Will ATMs at airports run out of cash during peak times?
Yes. During busy periods, cash may run out. Plan ahead, withdraw in parts.

Summary: 2025 yen investment outlook

Yen has evolved from “travel pocket money” to “hedging asset + income tool.” Mastering “phased exchange and earning after exchange” can minimize costs.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or swing trading based on needs. This prepares you for travel next year and adds a layer of protection during global market turbulence.

The details of yen exchange determine the returns. Start now—it’s more cost-effective than waiting.