Is now the right time to invest in Japanese Yen? Analysis of 4 major currency exchange channels and cost comparison

December 10, 2025, the NT dollar to Japanese Yen has reached 4.85, hitting a new high this year. Starting from 4.46 at the beginning of the year, the Yen has appreciated over 8% within the year. For investors looking to exchange currency, this is an opportunity not to be missed. But what’s the most cost-effective way to exchange? We will explain the latest four currency exchange channels once and for all, helping you spend less unnecessary money.

Why exchange to Yen now?

The Yen is no longer just travel “pocket money”; it has three layers of value.

Travel and daily consumption
Shopping in Tokyo and Osaka, skiing in Hokkaido, vacationing in Okinawa—most Japanese merchants still prefer cash (credit card penetration is only 60%). Purchasing agents, online auctions, studying abroad, and part-time work all require direct settlement in Yen.

Hedging asset status
The Yen ranks among the world’s three major safe-haven currencies (USD, Swiss Franc, Yen). During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, effectively buffering stock market declines. For Taiwanese investors, exchanging to Yen adds an extra layer of insurance to Taiwan stocks.

Arbitrage and fixed deposit yields
The Bank of Japan has started a rate hike cycle, expected to rise to 0.75% on December 19 (a 30-year high). Japanese bond yields hit a 17-year high of 1.93%. Currently, Yen fixed deposits offer annual interest rates of 1.5-1.8%, which is attractive compared to the low global interest environment.

Is now a good time to exchange? Short-term and medium-term outlook

Short-term (1-3 months)
The US entering a rate cut cycle supports the Yen, but there is a risk of global arbitrage unwinding, with volatility possibly reaching 2-5%. USD/JPY has fallen from 160 at the start of the year to 154.58; in the short term, it may rebound to around 155.

Medium to long-term (6-12 months)
The rate hike benefits for the Yen continue, with forecasts trending below 150. For investors under pressure of TWD depreciation, exchanging to Yen for asset allocation is a prudent choice.

Recommendation: Enter gradually, avoid all at once, to minimize risk through average cost.

Complete analysis of 4 currency exchange methods

1. Bank counter exchange — the most traditional but most costly

Carry NT$ cash directly to a bank or airport counter to exchange for Yen cash. Simple operation, but using “cash selling rate” (1-2% worse than spot rate), results in higher overall costs.

Taiwan Bank example: As of December 10, 2025, cash selling rate is about 0.2060 TWD/Yen (1 TWD = 4.85 Yen). Some banks charge fixed handling fees.

Advantages: Safe, full denominations, staff assistance available.
Disadvantages: Exchange rate spread, limited business hours (9:00-15:30), handling fees increase cost.
Estimated cost (NT$50,000): Loss of NT$1,500-2,000.
Suitable for: Travelers unfamiliar with online operations or urgent airport needs.

2. Online exchange + counter or ATM withdrawal — preferred by investors

Use bank app or online banking to convert NT$ into Yen and deposit into foreign currency account, using “spot selling rate” (about 1% discount). If cash withdrawal is needed, choose counter or foreign currency ATM, but will incur exchange spread fees (from NT$100) or interbank transfer fees (NT$5-100).

This method suits those monitoring exchange rates, entering in batches when the rate is low (TWD/JPY below 4.80). Cross-bank transfer costs are relatively low (~NT$5 per transfer). For cash withdrawal, additional ATM fees apply.

Advantages: 24/7 operation, allows averaging costs through batch purchases, better rates, low cross-bank transfer fees.
Disadvantages: Need to open a foreign currency account first; withdrawal incurs additional fees or cross-bank charges.
Estimated cost (NT$50,000): Loss NT$500-1,000.
Suitable for: Experienced forex users, those with foreign currency accounts, and for investing in Yen fixed deposits (interest rate 1.5-1.8%).

3. Online currency settlement + airport pickup — the best pre-travel plan

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (pay NT$10 via TaiwanPay), with about 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), suitable for booking a day before departure.

Advantages: Better rates, often no handling fee, can specify airport pickup, no cross-bank foreign currency transfer issues.
Disadvantages: Need to book in advance (1-3 days), pickup limited to bank hours.
Estimated cost (NT$50,000): Loss NT$300-800.
Suitable for: Planned travelers who want to withdraw directly at the airport.

4. Foreign currency ATM withdrawal — 24/7 emergency option

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen cash, supporting 24/7 operation and cross-bank withdrawals. Deducted from NT$ account, cross-bank fee is NT$5, but locations are limited (~200 nationwide), and denominations are restricted.

SinoPac’s foreign currency ATM allows withdrawal from NT$ accounts, with a daily limit of NT$150,000 and no exchange fee. Be aware that during peak times (airports, shopping districts), cash may run out; plan accordingly.

Advantages: Instant 24/7 withdrawal, flexible, lowest cross-bank transfer fee (NT$5).
Disadvantages: Limited locations and denominations (fixed 1,000/5,000/10,000 Yen), cash shortages during peak hours.
Estimated cost (NT$50,000): Loss NT$800-1,200.
Suitable for: Those with no time to visit banks or needing last-minute cash.

Summary of 4 exchange methods

What to do after exchanging Yen?

Don’t let the money sit idle without interest. Consider these four allocations:

Yen fixed deposit: Most stable. E.SUN/TAIBANK offer foreign currency accounts, online deposit, starting from 10,000 Yen, with annual interest of 1.5-1.8%.

Yen insurance policy: Medium-term holding. Cathay/Fubon life insurance savings policies with guaranteed 2-3% interest.

Yen ETFs (e.g., 00675U, 00703): Growth-oriented. Yuanta 00675U tracks Yen index; fractional shares available via broker apps, suitable for dollar-cost averaging.

Yen forex trading: Directly trade USD/JPY or EUR/JPY on forex platforms, capturing exchange rate fluctuations with both long and short positions, 24-hour trading.

While Yen is a safe haven, global arbitrage unwinding or geopolitical conflicts may suppress its value. For investment, Yen ETFs diversify risk; for trading, USD/JPY is a classic choice.

FAQs

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

Cash rate (Cash Rate) is the rate banks use for physical cash buying and selling, convenient for carrying cash but usually 1-2% worse than the spot rate, plus handling fees.

Spot rate (Spot Rate) is the foreign exchange market rate for T+2 settlement, used for electronic transfers without physical cash, more favorable and close to international market prices.

Q. How much Yen can I get for NT$10,000?

Calculation: Yen amount = NT$ amount × current rate.

Using Taiwan Bank’s December 10, 2025, cash selling rate of about 4.85 (1 NT$ = 4.85 Yen), NT$10,000 ≈ 48,500 Yen.

At spot selling rate (~4.87), about 48,700 Yen, a difference of roughly 200 Yen (about NT$40).

Q. What to bring for counter exchange?

Taiwanese: ID card + passport. Foreigners: passport + residence permit. If exchanging under company name, bring business registration. For online booking, bring transaction notice. Under 20 need parental consent; large amounts (>NT$100,000) may require source declaration.

Q. What is the limit for foreign currency ATM withdrawal in Taiwan?

Regulations vary (since October 2025, anti-fraud measures have tightened, with some digital accounts limited to NT$100,000-150,000 per day):

It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank transfer fees (NT$5 per transfer). During peak hours, cash may run out; plan ahead.

Conclusion

The Yen has evolved from a simple travel currency to an asset with hedging and investment value. By following the principles of “batch exchange + not letting money sit idle,” you can minimize costs and maximize returns.

Beginners can start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or forex trading based on needs. Not only can you travel more cost-effectively, but you also gain an extra layer of protection during global market fluctuations.