How to exchange Japanese Yen? Compare the costs of 5 major options. It's still not too late to act now.

By the end of 2025, the Taiwan dollar against the Japanese yen surged to the 4.85 level. This is not only good news for travelers going abroad but also a new opportunity for asset allocation. From 4.46 at the beginning of the year to now, the yen has appreciated over 8% annually. From an investment perspective, now is actually quite a good time to buy yen.

However, exchanging for yen involves some knowledge—using the wrong method could cost you an extra 2000 NT dollars on a 50,000 NT dollar amount. We have summarized the five most practical currency exchange channels to help you choose accurately.

Why exchange for yen now?

Many people think the yen is just “pocket money” for travel, but it’s actually much more than that.

Living needs: Whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, most Japanese merchants still only accept cash (credit card penetration is only 60%). Buyers of Japanese cosmetics, anime merchandise, and peripherals also need to exchange yen regularly. Planning to stay long-term or study in Japan? Exchanging in advance can lock in exchange rate risks.

Investment perspective: The yen is one of the three major global safe-haven currencies (alongside USD and Swiss Franc), especially attractive during stock market turbulence. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while stocks fell 10%—this demonstrates the power of safe-haven assets. For Taiwanese investors, exchanging for yen is like adding a layer of insurance to Taiwan stocks.

Arbitrage mechanism: The Bank of Japan maintains ultra-low interest rates (currently 0.5%) for a long time. Many investors borrow low-interest yen to exchange into higher-yield USD (USD/JPY interest rate differential of 4.0%), and when market risks increase, they close the position by buying back yen, earning the interest spread.

Current analysis: Is it worthwhile to exchange now?

It is indeed advantageous now, but smart operation is required.

The yen exchange rate is currently in a clear upward trend. The US interest rate cut cycle benefits the yen, while the Bank of Japan is on the verge of raising interest rates—Governor Ueda recently signaled a hawkish stance, with market expectations of an 80% chance of rate hikes, and a December 19 meeting expected to raise rates to 0.75% (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now. Short-term, it may test 155, but medium to long-term forecasts suggest it will be below 150—meaning, those buying yen now seem to be on the right side.

However, investing in yen is not about rushing all in at once—staged operations are smarter. Short-term arbitrage positions may cause 2-5% fluctuations, so it’s recommended to diversify entry points to reduce risk.

Comprehensive comparison of 5 yen exchange methods

1. Bank counter exchange: the most traditional but highest cost

Bring cash NT dollars directly to a bank or airport counter to exchange for yen cash. It’s simple and immediate. The problem is banks use the “cash selling rate,” usually 1-2% worse than the spot rate, plus possible handling fees, which could cost you an extra 1500-2000 NT dollars on 50,000 NT.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/JPY (1 NT$ = 4.85 JPY). Some banks also charge additional handling fees, starting from NT$100-200 per transaction.

Suitable for: Those unfamiliar with online operations, urgent needs, small amounts.

2. Online exchange + counter or ATM withdrawal: better rates, moderate costs

Use bank app or online banking to convert NT dollars to yen at the “spot selling rate” and deposit into a foreign currency account. This offers about 1% better rate than cash exchange. When cash is needed, go to the counter or withdraw via foreign currency ATM, but there will be exchange spread and handling fees (starting from NT$100).

E.SUN Bank app’s spot rate is about 0.2055 NT$/JPY. If withdrawing cash, additional handling fees apply (usually NT$100 minimum). This method suits those who want to buy in stages at lower points, avoiding exchange rate risk all at once.

Advantages: 24-hour operation, relatively favorable rates, averaging costs over time.
Disadvantages: Need to open a foreign currency account, withdrawal fees apply.
Suitable for: Those experienced in forex operations, long-term yen holders.

3. Online currency exchange + large transfer for counter pickup: best plan before traveling

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After completing the online transaction, bring ID and transaction notice to pick up cash at the counter. This is especially friendly for large transfers—you can make an appointment in advance and ensure funds are ready.

Taiwan Bank’s “Easy Purchase” online exchange fee is waived (pay NT$10 via TaiwanPay), with about 0.5% better rate. Mega International offers similar service. The biggest advantage is the ability to reserve pickup at Taoyuan Airport branches—Taiwan Bank has 14 airport branches, 2 of which are open 24 hours, making it very convenient to pick up cash before departure.

Advantages: Better rates, often no handling fee, airport pickup options, large transfer appointment.
Disadvantages: Need to book 1-3 days in advance, pickup during bank hours only, branches cannot be changed.
Suitable for: Travelers planning to go abroad, those who want convenience and savings.

4. Foreign currency ATM withdrawal: 24/7 flexibility

Use chip-enabled foreign currency cards to withdraw yen cash at ATMs. Open 24/7, cross-bank withdrawal fee is only NT$5, with a typical daily limit of NT$150,000. Fubon Bank’s foreign currency ATMs allow direct withdrawal from NT dollar accounts without exchange fees.

However, ATM locations are limited (about 200 nationwide), denominations are fixed (1000, 5000, 10000 JPY), and cash may run out during peak times. By the end of 2025, Japan ATM withdrawal services will be adjusted to require international cards (Mastercard/Cirrus).

Advantages: Instant withdrawal, high flexibility, cheapest cross-bank fee.
Disadvantages: Limited locations, fixed denominations, possible cash shortages at peak times.
Suitable for: Urgent needs, busy professionals who can’t visit banks.

5. Online forex trading platforms: alternative for investors

For those aiming to profit from exchange rate fluctuations, trading USD/JPY or EUR/JPY directly on forex brokers (like Mitrade) is an option. These platforms offer zero commission, low spreads, 24-hour trading, and both long and short positions. The advantage is small capital requirements and complete trading tools (stop-loss, take-profit, trailing stops), but the risk is high—unsuitable for pure currency exchange.

Advantages: Long and short positions, 24-hour trading, low costs.
Disadvantages: Highest risk, requires professional knowledge.
Suitable for: Experienced traders/investors.

Cost comparison of 4 schemes (based on 50,000 NT)

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

Don’t leave your yen to gather dust. Consider the following investment options:

Yen fixed deposit: Most stable. Open an account at Taiwan Bank or E.SUN, minimum 10,000 yen, annual interest 1.5-1.8%. Suitable for short-term parking of funds.

Yen insurance policy: Medium-term holding. Savings insurance from Cathay or Fubon Life, guaranteed interest rate 2-3%, with protection.

Yen ETFs: Growth-oriented. Yuanta 00675U tracks the yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging, annual management fee 0.4%.

Forex swing trading: Capture short-term USD/JPY or EUR/JPY fluctuations. 24-hour operation, flexible long/short, but requires judgment skills.

Although the yen is a safe-haven currency, it still experiences two-way volatility—interest rate hikes by the Bank of Japan are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could pressure it again. For investment purposes, yen ETFs are a balanced choice, helping diversify risk across currencies.

Quick answers to common questions

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

Cash rate (Cash Rate) is the buy/sell rate banks use for physical cash. It allows immediate cash exchange but is usually 1-2% worse than the spot rate, plus handling fees. Spot rate (Spot Rate) is the foreign exchange market’s T+2 settlement rate, used for electronic transfers, closer to international market rates but involves waiting for settlement. Simply put, cash is more expensive, electronic transfers are cheaper.

Q. How much yen do I get for 10,000 NT dollars?

Using the formula: Yen amount = NT dollars × exchange rate. With Taiwan Bank’s cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 JPY; with spot selling rate of 4.87, ≈ 48,700 JPY—about 200 yen difference (roughly NT$40).

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

Taiwanese need to bring ID card + passport; foreigners need passport + residence permit. If pre-booked online, also bring transaction notice. Under 20 requires parental accompaniment. For large transfers over NT$100,000, may need to declare source of funds.

Q. What are the limits for foreign currency ATM withdrawals?

From October 2025, new regulations tighten limits:

It’s recommended to split withdrawals and use your own bank card to avoid cross-bank fees. During peak times (like airports), cash may be short, so plan ahead.

Summary: Two key rules for smart yen exchange

The yen is no longer just “pocket money” for travel but a valuable asset class with hedging and investment potential.

First rule: Staged exchange—don’t convert all at once. Use exchange rate fluctuations to enter gradually, averaging costs and reducing risk.

Second rule: After exchange, keep working—transfer yen into fixed deposits, ETFs, or swing trading to keep your money growing.

Beginners should start with “Taiwan Bank online exchange + large transfer for counter pickup” or “foreign currency ATM,” then gradually try fixed deposits or ETFs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence. Act now, and when winter comes with maple viewing, you’ll already have yen ready to spend.