2025 Yen Exchange Guide: 4 Methods Tested, Which One Saves the Most Money?

The NT dollar to Japanese Yen exchange rate has broken through the 4.85 mark, and the travel enthusiasm to Japan is picking up again. Many are starting to consider exchanging yen. But did you know? Exchanging 50,000 NT dollars through the wrong channel alone could result in a loss of 2,000 NT dollars. We tested the four most common ways to exchange Japanese Yen in Taiwan to help you figure out which is the most cost-effective.

Why is it worth exchanging for Yen? Not just for travel money

Many people think exchanging Yen is just for traveling abroad, but there are deeper values behind it.

Travel and daily life: Japan still has a strong cash culture; most shopping in Tokyo, Osaka, and skiing in Hokkaido only accept cash, with credit card penetration at only 60%. Purchasing agents, Japanese online auctions, studying abroad, and part-time work all require Yen payments.

Financial hedging perspective: The Yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc). Japan’s economy is stable with low debt. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, successfully buffering stock market declines. For Taiwanese investors, exchanging Yen adds a protective layer to Taiwan stocks.

Interest rate arbitrage opportunities: Japan’s ultra-low interest rate (0.5%) makes Yen a “funding currency.” Many investors borrow Yen to buy high-yield USD, with the USD/TWD rate depending on the current exchange rate, and the US-Japan interest rate spread reaching 4.0%. When risks rise, they close positions for profit.

Is now a good time to exchange Yen? Timing analysis

As of December 2025, the NT dollar to Yen rate is about 4.85, up from 4.46 at the start of the year, an appreciation of 8.7%. The USD to TWD rate also fluctuates, but Yen remains more attractive.

In the second half of the year, Taiwan’s foreign exchange demand grew by 25%, mainly driven by travel recovery and hedging needs. The Bank of Japan is on the verge of raising interest rates; Governor Ueda’s hawkish comments pushed expectations of a rate hike to 80%, with a projected increase to 0.75% in December (a 30-year high). Short-term fluctuations may be 2-5%, but medium to long-term outlook suggests USD/JPY will stay below 150.

Conclusion: It’s cost-effective, but don’t exchange all at once. Staggering your purchases for an average cost is the smartest approach.

Four tested methods to exchange Yen

Method 1: Bank Counter Exchange (Most traditional)

Bring cash NT dollars directly to a bank branch or airport to exchange for Yen notes. Simple to operate, but uses the “cash selling rate” (1-2% worse than spot rate), which is the highest cost.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/Yen (meaning 1 NT$ = 4.85 Yen). Some banks charge additional handling fees.

Latest rates from December 2025

Suitable for: Those unfamiliar with online operations or urgent cash needs (e.g., at the airport).

Estimated cost: Exchanging 50,000 NT$ could lose about 1,500-2,000 NT$.

Method 2: Online FX + In-person withdrawal (Advanced users)

Use bank apps to convert at the “spot selling rate” (about 1% better than cash rate), deposit into a foreign currency account, then withdraw cash at a branch or ATM. Withdrawal incurs a currency conversion fee.

For example, after converting via E.SUN app, withdrawing Yen notes costs at least 100 NT$. This method suits those monitoring exchange rates and buying in batches at low points.

Advantages: 24-hour operation, allows averaging costs, better rates.
Disadvantages: Need to open a foreign currency account first; withdrawal fees (5-100 NT$).

Estimated cost: Loss of about 500-1,000 NT$ on 50,000 NT$.

Method 3: Online currency exchange + airport pickup (Popular among office workers)

No need for a foreign currency account. Book online via bank website, select branch and pickup date, transfer funds, then pick up with ID and transaction notice. Taiwan Bank’s “Easy Purchase” waives handling fees (only 10 NT$ via TaiwanPay), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours. You can pick up cash directly before departure—super convenient.

Advantages: Better rates, often no handling fee, airport pickup.
Disadvantages: Need to book 1-3 days in advance; pickup time limited by bank hours.

Estimated cost: Loss of 300-800 NT$ on 50,000 NT$.

Method 4: Foreign currency ATM withdrawal (24/7 flexibility)

Use a chip-enabled debit card at foreign currency ATMs to withdraw Yen. Available 24/7, cross-bank fee only 5 NT$. Sinopac’s foreign currency ATMs have a daily limit of 150,000 NT$, with no currency conversion fee.

About 200 ATMs nationwide, with fixed denominations of 1,000/5,000/10,000 Yen. During peak times, cash may be insufficient.

Advantages: Instant withdrawal, high flexibility, low cross-bank fees.
Disadvantages: Limited locations, fixed denominations, possible cash shortages at peak times.

Estimated cost: Loss of 800-1,200 NT$ on 50,000 NT$.

Quick comparison of the four methods

Our recommendation: For budgets of 50,000-200,000 NT$, the most cost-effective options are “Online FX + airport pickup” or “Mix of foreign currency ATM withdrawals.”

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

Once you have Yen, instead of letting it sit and earn nothing, consider these four options:

Yen fixed deposit: The most stable. E.SUN and Taiwan Bank require at least 10,000 Yen, with annual interest rates of 1.5-1.8%. Suitable for conservative investors.

Yen insurance policies: Medium-term holding. Cathay and Fubon offer savings insurance with 2-3% annual returns, combining protection and gains.

Yen ETFs (00675U, 00703): Growth-oriented. Yuanta’s 00675U tracks Yen index, with 0.4% management fee, available for fractional investing via broker apps.

Forex swing trading: For advanced traders. Trade USD/JPY or EUR/JPY directly on platforms like Mitrade, with zero commissions, low spreads, and 24-hour buy/sell options.

Quick FAQs

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

Cash rate is the bank’s buy/sell rate for physical banknotes, with a 1-2% spread, used for cash transactions. Spot rate is the FX market’s T+2 settlement rate, used for electronic transfers, closer to international market prices.

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

Using the formula 【Yen = NT$ × rate】, with Taiwan Bank’s cash selling rate at 4.85, 10,000 NT$ ≈ 48,500 Yen; with spot rate at 4.87, about 48,700 Yen.

Q. What to bring for counter exchange?

ID + passport (foreigners bring passport + residence permit). For online booking, also bring transaction notice. Large amounts (over 100,000 NT$) may require source of funds declaration.

Q. What’s the daily withdrawal limit at ATMs?

Post-2025 regulations, most banks set a limit of 100,000-150,000 NT$ per day. Consider splitting withdrawals or using your own bank card to avoid cross-bank fees.

Final words

Yen is no longer just “travel pocket money.” It also offers hedging and investment value. Whether you plan to visit Japan next year or want to diversify risks amid NT$ depreciation, remember these two tips: “Stagger your exchanges” and “Don’t leave your Yen idle after exchange.” This way, you can minimize costs and maximize returns.

Beginners should start with “Taiwan Bank online FX + airport pickup” or “foreign currency ATM,” then shift into fixed deposits, ETFs, or swing trading based on needs. Not only will you enjoy more cost-effective trips abroad, but you’ll also have an extra layer of protection against global market shocks.