How to exchange TWD to JPY in the most cost-effective way? An in-depth analysis of bank exchange options

In December 2025, the NT dollar to Japanese Yen exchange rate reached 4.85. This figure is a good entry point for those planning to travel abroad or hedge with JPY. But what truly determines whether it’s “worth it” isn’t the exchange rate itself, but which bank you choose and what exchange method you use. Exchanging NT$500,000 through the wrong channel could cost you over NT$2,000—equivalent to a big meal.

This article will break down Taiwan’s four main JPY exchange channels, using actual data to show you which is truly the most cost-effective.

Is now a good time to exchange for Yen?

First, the conclusion: Yes, but consider doing it in installments.

From the start of the year, NT$ to JPY has risen from 4.46 to 4.85, an appreciation of 8.7%. For Taiwanese investors, this already means significant forex gains. Most importantly, the Bank of Japan is about to act—Governor Ueda Kazuo has signaled a hawkish stance, with market expectations of an 80% chance of interest rate hikes on December 19, possibly raising rates to 0.75% (a 30-year high).

What does this mean? In the short term, the Yen will be supported. However, USD/JPY has fallen from 160 at the start of the year to 154.58 now, and may temporarily rebound to around 155 before declining again. If you’re just traveling, exchanging now is fine; but for investment purposes, splitting into 3-4 entries is more prudent.

Additionally, note that in the second half of 2025, Taiwan’s forex demand is expected to grow by 25%, mainly due to revived travel interest and increased hedging needs. Therefore, at airports and foreign currency ATMs, cash may run out during peak times, so plan ahead.

Comparing four bank channels for exchanging Yen

Method 1: Over-the-counter cash exchange—most convenient but most expensive

Bring NT$ cash directly to a bank or airport counter to exchange for Yen cash. This is the most traditional and straightforward method.

Banks use the “cash selling rate,” which is 1-2% worse than the spot rate. Some banks also charge handling fees, making this the most costly option overall. For example, Taiwan Bank’s cash selling rate on December 10 was about 0.2060 (equivalent to NT$1 = 4.85 Yen). China Trust was 0.2065, Taipei Fubon even 0.2069. The difference between banks can amount to several hundred Yen.

Some banks also charge NT$100-200 per transaction. E.g., E.SUN, E.SUN, Cathay United Bank charge this fee, while Taiwan Bank and Mega Bank are free. Exchanging NT$50,000 this way could cost you NT$1,500-2,000 more.

Who is this suitable for?: Small, urgent needs (like last-minute airport shopping), small amounts, or those unwilling to do research.

Method 2: Online forex transfer to foreign currency account—balanced choice

Use your bank’s app to transfer NT$ from your NT dollar account into Yen in your foreign currency account. This uses the “spot sell rate,” about 1% better than cash rates.

If you want cash, you can withdraw at counters or foreign currency ATMs, but there will be an additional forex handling fee (around NT$100+). The key advantage is that you can buy gradually as the rate moves favorably. When NT$ to Yen drops below 4.80, you can buy in installments, lowering your average cost—standard investment practice.

Online transfers are available 24/7, and once you have a foreign currency account, future transactions save time. The downside is that opening the account takes some initial effort, and cash withdrawals incur extra fees (NT$5-100 per transfer).

Who is this suitable for?: Those experienced in forex investing, frequent foreign currency buyers, or those wanting to earn interest by holding Yen (current annual interest rate around 1.5-1.8%).

Method 3: Online pre-order currency exchange—most cost-effective pre-travel plan

A recent popular method. No need to open a foreign currency account first. Just fill out the amount, pick-up date, and branch on the bank’s website. The bank completes the remittance, and you go to the counter with your ID and transaction notice to pick up the Yen.

Taiwan Bank’s “Easy Purchase” online exchange is completely fee-free (pay NT$10 via Taiwan Pay), with about 0.5% better rates. They have 14 pick-up points at Taoyuan Airport, including 2 24-hour locations, so you can pre-arrange to pick up directly at the airport—no need to visit the bank.

Mega Bank offers similar service. The downside is you need to book 1-3 days in advance; branches can’t accommodate last-minute changes, and pick-up times must align with bank hours.

Exchanging NT$50,000 this way costs only NT$300-800 in fees, balancing efficiency and cost.

Who is this suitable for?: Those with planned travel, time to pre-arrange, and want to pick up cash directly at the airport.

Method 4: Foreign currency ATM withdrawal—emergency ace

Use a chip-enabled bank card at a foreign currency ATM to withdraw Yen cash directly. No queues, no waiting, 24/7 access. Cross-bank withdrawal fee is NT$5 (e.g., E.SUN Bank’s NT$ account can withdraw Yen directly without forex conversion fee). No other fees.

E.SUN’s foreign currency ATMs have a daily limit of NT$150,000, enough for small amounts. However, there are only about 200 such ATMs nationwide, with limited locations, and denominations are fixed (1,000, 5,000, 10,000 Yen). During peak times (especially at airports), cash may run out. Don’t wait until the last minute to withdraw—by then, the cash might be gone.

Who is this suitable for?: Urgent needs, after hours or on weekends, or those who prefer not to visit a bank.

Summary of costs and suitable scenarios for four methods

Actual costs vary with exchange rate fluctuations as of December 10, 2025.

Major banks’ cash selling rates for Yen

Finding the best rate can save you money:

Taiwan Bank and E.SUN offer better rates, but E.SUN charges NT$100 fee, so Taiwan Bank is more economical. (Data as of December 10, 2025)

After exchanging Yen, don’t let your money sit idle

If you hold NT$300,000 or NT$500,000 in Yen without investing, that’s a missed opportunity. Yen, while a safe-haven currency, can also generate interest and growth.

Yen fixed deposit: The safest, simplest way—open a foreign currency account with E.SUN or Taiwan Bank, deposit online. Minimum NT$10,000, current annual interest 1.5-1.8%. NT$50,000 yields NT$750-900 annually, with compound interest over time.

Yen insurance policies: Buy savings insurance from insurers like Cathay or Fubon, with guaranteed interest rates of 2-3%. Lock-in for 2-5 years, suitable for those not in urgent need.

Yen ETFs: For growth, consider ETFs like Yuanta 00675U or 00703, which track Yen indices. You can buy fractional shares via broker apps, starting at a few hundred NT$, with low fees (annual management fee 0.4%). Ideal for those optimistic about Japan’s long-term prospects and prefer passive investment.

Whatever you choose, don’t let Yen sit idle. The BOJ’s rate hikes and Yen appreciation are positive signals, but global arbitrage unwinding or geopolitical tensions (Taiwan Strait, Middle East) could temporarily push Yen lower. Having fixed deposits or ETFs can help stabilize your holdings.

Quick FAQs

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

Cash rate is the price banks offer for physical banknotes—immediate cash, but 1-2% worse than the spot rate. Spot rate is the “market price” in forex markets, used for electronic transfers, settled T+2, more favorable but takes time. Simply put, spot is cheaper than cash.

Q: How much Yen can NT$10,000 buy?

Using the formula: Yen = NT$ × current rate. At Taiwan Bank’s cash selling rate of 4.85, NT$10,000 = 48,500 Yen. Using the spot rate (~4.87), it’s about 48,700 Yen—difference of about 200 Yen (~NT$40).

Q: What documents are needed for over-the-counter exchange?

Taiwanese: ID card + passport. Foreigners: Passport + residence permit. If pre-booked online, bring transaction notice. Minors need parent consent; large amounts (>NT$100,000) require source declaration.

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

From October 2025, limits are adjusted: China Trust NT$120,000 equivalent/day; Taishin NT$150,000/day; E.SUN NT$50,000 per transaction, NT$150,000/day (including card charges). Digital accounts are capped at NT$100,000/day. Use your bank card to avoid cross-bank fees (NT$5).

Final advice

Yen is no longer just “pocket money for travel” but a real asset with hedging and investment potential. Under NT$ depreciation pressure, converting some funds into Yen can help with travel expenses and provide a buffer during global market volatility.

Key points: Use installment exchanges and don’t let Yen sit idle. Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer Yen into fixed deposits, ETFs, or try small-scale trading based on needs. This approach makes travel cheaper and adds flexible investment options.