Japanese Yen Exchange Guide | 4 Major Exchange Strategies You Should Know Amidst NT$ Depreciation in 2025

As of December 2025, the NT$ to JPY exchange rate has reached 4.85, hitting a new high for the year. This is not only a signal of the peak travel season but also a turning point for asset allocation.

Compared to the exchange rate of 4.46 at the beginning of the year, the yen has appreciated by 8.7%, making it the most stable hedging asset performance this year. During the same period, how much is the HKD in NT$? The HKD exchange rate has remained relatively stable between 3.9 and 4.0, with a much smaller increase than the yen, reflecting a global capital trend favoring yen hedging.

If you’re still considering whether to exchange for yen now—the answer is: it’s time to enter in batches.

Why now? Three major reasons why the yen is a must-have this year

1. Stable safe-haven currency status

The yen is ranked alongside the US dollar and Swiss franc as one of the world’s three major safe-haven assets. When global economic uncertainty rises, capital floods into the yen. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, while the stock market fell by as much as 10%—buying yen is equivalent to purchasing risk hedging.

For Taiwanese investors, when Taiwan stocks face geopolitical risks, some funds shifting into yen not only preserve value but also provide a complementary hedge.

2. Central bank rate hikes bring new opportunities

The Bank of Japan (BOJ) Governor Ueda Kazuo recently expressed a hawkish stance, with market rate hike expectations reaching 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high), and the 10-year Japanese government bond yield has hit a 17-year high of 1.93%.

This indicates that yen deposit interest rates are expected to further rise. Current market quotes show annual rates of 1.5-1.8%, far better than NT$ savings accounts at 0.7-1.0%.

3. NT$ depreciation pressure persists

In the global rate hike cycle, the US dollar remains attractive, and the NT$ faces depreciation expectations. Rather than passively suffer exchange losses, it’s better to actively allocate into strong currencies like yen and USD.

Four practical yen exchange options comparison

Based on the latest rates in December 2025, we’ve summarized the costs, timing, and flexibility of each method to help you quickly determine the most suitable choice.

Option 1: Cash at counter exchange｜Most traditional, highest cost

Carry NT$ cash directly to a bank or airport counter to exchange for yen. Banks offer “cash selling rates,” usually 1-2% worse than the spot rate.

Actual cost: For NT$50,000, a loss of NT$1,500-2,000

Taiwan banks’ cash selling rate is 0.2060 (i.e., NT$1 = 4.85 yen). Some banks charge an additional NT$100-200 handling fee. Including travel time and queues, this method is only suitable for urgent airport needs or small amounts.

Pros: Instant cash on hand, safe and reliable, full denominations
Cons: Exchange rate spread, limited by business hours, extra fees increase costs
Suitable for: Inexperienced with online operations, urgent airport cash needs

Option 2: Online currency exchange to account｜Flexible, suitable for investment

Use bank app to convert NT$ into yen and deposit into a foreign currency account (using spot rate, about 1% discount). If you need cash withdrawal, do so at counters or ATMs, with additional withdrawal fees.

The core advantage is “batch entry.” You can buy gradually at low points (e.g., NT$ to yen below 4.80), averaging costs, while observing short-term exchange rate fluctuations (currently USD/JPY at 154.58, expected to fluctuate around 155).

Actual cost: Loss NT$500-1,000

Pros: 24-hour operation, batch buying, favorable rates, can transfer yen into fixed deposits or ETFs
Cons: Need to open a foreign currency account first, withdrawal fees apply, may be unfamiliar with procedures
Suitable for: Experienced forex traders, small-scale yen deposit investments (annual interest 1.5-1.8%) or ETFs (like 00675U)

Option 3: Online currency exchange + airport pickup｜Most recommended, best balance

No need for a foreign currency account. Place an order on the bank’s website: fill in the amount, select pickup branch, pay online (or via TaiwanPay for NT$10), then bring ID to pick up in person.

Taiwan Bank’s “Easy Purchase” offers this service, with no handling fee and about 0.5% favorable rate. Key feature: reservation for Taoyuan Airport pickup, with 14 Taiwan Bank counters inside the airport (2 open 24 hours), very convenient.

Ideal for booking a week before departure, then heading straight to the airport to pick up, avoiding queues.

Actual cost: NT$300-800 loss

Pros: Usually no handling fee, favorable rates, airport pickup, no foreign currency account needed
Cons: Need to book 1-3 days in advance, branches cannot be changed, pickup times limited
Suitable for: Planned travelers, those wanting easy airport cash collection

Option 4: Foreign currency ATM withdrawal｜Fastest, 24/7 operation

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash directly. Simple operation, open 24 hours, with only NT$5 cross-bank fee deducted from NT$ account. Mainstream banks like E.SUN have daily withdrawal limits around NT$150,000.

The only downside: limited locations (about 200 nationwide), and cash may run out during peak times (e.g., Lunar New Year, airports). Denominations are fixed at 1,000/5,000/10,000 yen. Avoid waiting until the last minute to prevent missing out.

Actual cost: NT$800-1,200 loss

Pros: Instant withdrawal, high flexibility, low cross-bank fee, 24/7 access
Cons: Limited locations, cash shortages possible, fixed denominations
Suitable for: Urgent needs, busy professionals without time for counters

Is it really worth exchanging yen now?

Short-term judgment: Use batch buying, avoid all-in at once

The yen remains volatile. In the US rate hike cycle, the yen is supported; but expectations of BOJ rate hikes also push up Japanese bond yields. USD/JPY has fallen from a high of 160 at the start of the year to 154.58, possibly testing 155 short-term, with a long-term forecast below 150.

In other words, in the next 1-3 months, the yen may fluctuate 2-5%. This isn’t a call to wait for the bottom (no one can predict accurately), but rather to use “dollar-cost averaging” or “batch entry” to reduce the risk of buying at a high.

Mid- to long-term judgment: Yen is a good hedge for Taiwan stocks

If you hold Taiwan stocks and worry about volatility in tech stocks or semiconductors in 2025, allocating 10% of your funds into yen is a reasonable hedge. The yen’s safe-haven property can provide protection during global stock declines.

After exchanging for yen, don’t let your money sit idle

Many people exchange yen and leave it untouched, which forfeits potential gains. Here are four options suitable for small investors and beginners:

1. Yen fixed deposit: Most stable, E.SUN Bank, Taiwan Bank offer foreign currency accounts, with a minimum of NT$10,000 and annual interest of 1.5-1.8%

2. Yen ETFs: Growth-oriented, such as Yuanta 00675U tracking yen index, can be bought in fractional shares via broker apps, suitable for dollar-cost averaging

3. Yen insurance policies: Medium-term holding, Cathay, Fubon Life offer savings insurance with guaranteed interest rates of 2-3%

4. Yen forex trading: For advanced investors willing to accept volatility, directly trade USD/JPY or EUR/JPY pairs to capture intraday or swing opportunities

Although yen is a hedging asset, it still fluctuates bidirectionally. If you’re not a professional trader, it’s recommended to prioritize fixed deposits or ETFs, which can enjoy interest rate hikes and benefit from yen appreciation.

Quick FAQ

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

Cash rate is for physical banknotes and coins, usually 1-2% worse than the spot rate, suitable for travel cash exchange. Spot rate is the T+2 settlement price in forex markets, closer to international market, used for electronic transfers or account transfers, with better rates.

Q: How much yen can I get for NT$10,000?

Based on Taiwan Bank’s December 2025 rate, cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. Using spot rate 4.87, about 48,700 yen, difference of roughly 200 yen (NT$40).

Q: What do I need to bring for counter exchange?

Taiwanese need ID card + passport; foreigners need passport + residence permit. For online reservations, bring transaction notice. Under 20 requires parent’s consent and ID. For amounts over NT$100,000, may need to declare source of funds.

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

Different banks have different limits (from October 2025, enhanced anti-fraud measures): CITIC NT$120,000/day, Taishin NT$150,000/day, E.SUN NT$150,000/day (including debit). Use your own bank card to avoid NT$5 cross-bank fee.

Final reminder

The yen has evolved from a simple “travel pocket money” to a dual-purpose asset for hedging and investment. When the NT$ faces depreciation pressure and global economic uncertainties abound, holding some yen is a form of asset protection.

The key tips are twofold: Batch exchange to avoid high points, and after exchanging, shift into fixed deposits or ETFs. Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then upgrade to fixed deposits, ETFs, or advanced trading based on needs.

This way, you can enjoy cost-effective travel and add a layer of protection during market turbulence.