Japanese Yen Exchange Guide: 4 Major Channels Compared in Practice, A Must-Read Before Traveling Abroad

The NT$ to JPY exchange rate has now reached 4.85, depreciating nearly 9% since the beginning of the year. Want to exchange for yen but don’t know where to start? Actually, Taiwan offers more than one way to exchange yen, with differences in exchange rates alone amounting to over NT$2000. This article will clearly explain the four most recent currency exchange channels, whether for travel or investment, so you can find the most cost-effective solution.

Why exchange for yen? Not just for traveling abroad

Many people think exchanging yen is only for traveling abroad, but in fact, the uses of the Japanese yen are much broader than imagined.

Daily life: Japanese consumption still mainly cash

• Shopping in Tokyo, Osaka, skiing in Hokkaido, vacationing in Okinawa—most stores only accept cash (credit card penetration about 60%)
• Purchasing pharmaceuticals, cosmetics, and clothing via proxy shopping or cross-border shopping requires direct yen payment
• Study, work, or vacationers exchange currency in advance to avoid sudden exchange rate fluctuations

Investment aspect: Yen is one of the world’s three major safe-haven currencies

The yen ranks alongside the US dollar and Swiss franc as a top safe-haven currency, due to Japan’s stable economy and high sovereign bond ratings. During market turbulence, funds flow heavily into the yen—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in one week, while the stock market fell 10%, creating a perfect hedge. For Taiwanese investors, holding yen is not just for fun but also an effective tool to hedge against Taiwan stock market risks.

Additionally, Japan’s long-term ultra-low interest rate policy (recently only 0.5%) makes the yen a “funding currency.” Many institutions borrow low-interest yen to invest in higher-yield USD, with interest rate spreads reaching up to 4%, further driving demand for yen trading.

Is now a good time to exchange yen? Timing analysis

As of December 10, 2025, the NT$ to yen exchange rate is about 4.85, appreciating 8.7% since the start of the year, making the exchange gains quite substantial. In the second half of 2025, Taiwan’s currency exchange demand increased by 25%, mainly due to the recovery in travel and hedging needs.

Short-term outlook: The Bank of Japan governor Ueda Kazuo’s hawkish remarks have pushed up the rate hike expectation to 80%, with a projected rate increase to 0.75% by the year-end (a 30-year high), and Japanese government bond yields hitting a 17-year high of 1.93%. The USD/JPY has fallen from 160 at the start of the year to 154.58 now; in the short term, it may test 155, but medium to long-term forecasts suggest it could fall below 150, which benefits yen holders.

Strategy recommendation: Do not exchange all at once; instead, stagger your purchases to average costs. The dual-direction volatility risk of yen is driven by global arbitrage unwinding or geopolitical conflicts, which could depress the exchange rate. Short-term fluctuations may be 2-5%.

Four major currency exchange channels in Taiwan for yen, comparison chart

1. On-site cash exchange (highest cost, safest)

Bring NT$ cash to a bank branch or airport counter, exchange for yen cash on the spot. While the operation is simple, using the “cash selling rate” usually costs 1-2% above the spot rate, making overall costs higher.

Taiwan Bank’s cash selling rate as of December 10, 2025, is about NT$0.2060 per yen (roughly NT$4.85 per yen). Some banks charge an additional handling fee of NT$100-200.

Suitable for: People unfamiliar with online transactions, urgent small cash needs.

2. Online exchange + in-branch withdrawal (balanced approach)

Through bank app or online banking, convert NT$ to yen at “spot selling rate” and deposit into a foreign currency account (with a 1% discount). When withdrawing cash at the counter or foreign currency ATM, fees are charged (minimum NT$100).

This method is suitable for observing exchange rate trends and entering markets gradually at low points. E.g., E.SUN Bank, CTBC Bank offer this service.

Advantages: 24-hour operation, favorable rates, staggered buying possible
Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees
Best for: Those experienced in forex, planning long-term holding

3. Online currency exchange reservation (best pre-departure plan)

No need for a foreign currency account. Reserve via bank website by inputting amount, branch, and date. After confirmation, bring ID and notification slip to the branch for pickup. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (NT$10 if paid via Taiwan Pay), with a 0.5% favorable rate.

Special advantage: You can reserve pickup at 14 Taiwan Bank locations at Taoyuan Airport (including 2 24-hour branches), and collect cash directly before departure.

Advantages: Best exchange rate, often no fees, convenient airport pickup
Disadvantages: Need to reserve 1-3 days in advance, branch changes cannot be made
Suitable for: Travelers planning to go abroad

4. Foreign currency ATM (most flexible but limited locations)

Use a chip-enabled finance card to withdraw yen cash from foreign currency ATMs at banks, operational 24/7. Deducts only NT$5 cross-bank fee from your NT$ account, no exchange fee.

E.SUN Bank’s foreign currency ATMs have a daily limit of NT$150,000, with about 200 locations nationwide. Denominations are fixed at 1,000/5,000/10,000 yen.

Advantages: Instant withdrawal, 24/7 operation, low cross-bank fee
Disadvantages: Limited locations, fixed denominations, cash may run out during peak hours
Suitable for: Urgent needs, no time for in-branch visit

Quick comparison table of the four methods

Estimate based on exchanging NT$50,000:

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

Once you’ve obtained yen, if you don’t want your funds to depreciate with zero interest, consider these four investment options:

Yen fixed deposit: Most stable; deposit NT$ into E.SUN/Taiwan Bank foreign currency accounts online, starting from 10,000 yen, with annual interest rates of 1.5-1.8%.

Yen insurance policy: Medium-term holding; Cathay or Fubon savings insurance with guaranteed interest rates of 2-3%.

Yen ETFs: Growth-oriented; e.g., Yuanta 00675U tracking yen index, buy fractional shares via broker apps, suitable for dollar-cost averaging. Slightly higher risk than fixed deposit, with an annual management fee of 0.4%.

Key points for yen investment: Yen as a hedging asset fluctuates bidirectionally; Japanese rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts could lower the yen. Beginners are advised to start with fixed deposits or ETFs.

Common Q&A about exchanging yen

Q. What is the difference between cash rate and spot rate?

Cash rate is the buying/selling rate banks offer for physical banknotes/coins; it’s convenient for immediate delivery but costs 1-2% more. Spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers, offering better rates but requiring settlement time.

Q. How much yen can I get with NT$10,000?

Calculation: Yen amount = NT$ amount × rate. Using the December 2025 rate of 4.85, NT$10,000 ≈ 48,500 yen.

Q. What should I bring for on-site currency exchange?

TAIWANESE: Bring ID card + passport. FOREIGNERS: Bring passport + residence permit. For online reservation, also bring transaction notice. Minors under 20 need parental consent; large exchanges over NT$100,000 require source of funds declaration.

Q. What is the limit for foreign currency ATM withdrawals?

Post-2025, various banks’ limits are reduced to NT$100,000-150,000 per day. Your own card can be used; other bank cards depend on issuing bank’s limits. It’s recommended to diversify withdrawals and plan ahead during peak hours.

Conclusion

The yen has evolved from “pocket money for travel” to an asset with hedging and investment value. By mastering staggered currency exchange and avoiding idle holdings, you can reduce costs and increase returns. Newcomers are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then switch to fixed deposits or ETFs as needed. This way, you can enjoy cost-effective travel and add a layer of protection during global volatility.