How to exchange Japanese Yen most cheaply? Master 4 tips to save over 1,000 on exchange rates

The exchange rate from TWD to JPY has already reached 4.85, up from 4.46 at the beginning of the year, an appreciation of 8.7%. If you’re considering traveling to Japan or making small JPY investments, now is a great time—provided you choose the right currency exchange method. One option might cost you an extra 1500 NT dollars, while another could save you 800 NT dollars; the difference lies in these 4 methods.

Calculate first, decide later: The difference in exchange costs for 50,000 NT dollars

Many people think all bank exchanges for JPY are the same, but the exchange rate difference can eat into your afternoon tea budget. For example, with 50,000 NT dollars:

• Over-the-counter cash: Most expensive, losing 1500-2000 NT dollars (1-2% exchange rate difference + fees)
• Online currency exchange: Most cost-effective, losing 300-800 NT dollars (0.5% exchange rate advantage, often no fee)
• Online currency conversion: Moderate, losing 500-1000 NT dollars (additional withdrawal fee required)
• Foreign currency ATM: Balanced, losing 800-1200 NT dollars (limited locations but instant)

Is it worth exchanging JPY now? The answer is “batch exchange”. Short-term JPY fluctuations are between 154-155, with a medium- to long-term forecast below 150. If you exchange all at once, the risk is arbitrage unwind when the Bank of Japan raises interest rates, which could cause a 2-5% fluctuation. Staggered entry can average the rate and avoid chasing the high.

Comparing 4 exchange methods, choose the right one to save big

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

Bring NT dollars directly to a bank or airport counter to exchange for JPY. It sounds simple, but it uses the “cash selling rate,” which is about 1-2% worse than the market rate. Taiwan Bank’s rate as of 2025-12-10 is 1 JPY = 0.2060 NT (i.e., 4.85 JPY per NT dollar), but this is the cash rate, often with additional fees.

Some banks waive fees, others charge 100-200 NT per transaction. If you only need 5000 JPY for emergencies, this method is fine; for over 50,000 NT dollars, the loss becomes significant.

Best suited for: Urgent airport needs, travelers with amounts under 10,000 NT dollars.

Method 2: Online exchange + ATM withdrawal—moderate choice

First, transfer NT dollars to a foreign currency account via bank app or online banking, using the “spot sell rate” (about 0.5% better than cash rate). Then, withdraw cash at the counter or foreign currency ATM. The rate is better than direct counter exchange, but there’s an additional withdrawal fee (around 5-100 NT).

E.SUN Bank and Taiwan Bank support this method. The advantage is 24/7 operation, allowing staggered purchases to average costs. The downside is needing a foreign currency account and paying a fee for cash withdrawal.

Best suited for: Investors experienced with forex accounts, wanting to buy in installments.

Method 3: Online currency exchange + airport pickup—best for office workers

No need for a foreign currency account. Book online via bank website (usually 1-3 days in advance), specify amount, branch, and date. After remittance, bring ID and transaction notice to pick up cash. Taiwan Bank’s “Easy Purchase” online exchange has no fee (pay NT$10 via Taiwan Pay), with about 0.5% exchange rate advantage.

The best part: Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours. Pick up before departure—super convenient. Cost-wise, losing about 300-800 NT dollars for 50,000 NT.

Best suited for: Planned travelers, office workers wanting to settle everything at the airport.

Method 4: Foreign currency ATM—lazy option

Use a chip-enabled debit card at foreign currency ATMs to withdraw JPY cash, available 24/7, with only a 5 NT fee for cross-bank withdrawal. E.SUN Bank’s foreign currency ATM allows direct withdrawal from NT account, with a daily limit of 150,000 NT, no currency exchange fee.

Disadvantages: Few locations (about 200 nationwide), cash may run out during peak times (like airport basement), fixed denominations (1000, 5000, 10000 JPY), less flexible. But if you need cash urgently and want to avoid bank visits, this is a quick fix.

Best suited for: Sudden needs, busy office workers with no time to plan.

Exchange rates of various banks (as of 2025-12-10)

After exchanging JPY, what’s next? Don’t let your money sit idle

Once you have JPY, consider some value-added options:

JPY fixed deposit: Most stable. E.SUN and Taiwan Bank offer annual interest rates of 1.5-1.8%, with a minimum deposit of 10,000 JPY.

JPY insurance policies: Cathay and Fubon life’s savings insurance, with guaranteed rates of 2-3%, suitable for medium-term holding.

JPY ETFs: Yuanta 00675U tracks the JPY index, with a 0.4% annual management fee, can be fractional shares, suitable for regular investment.

Forex swing trading: Trade USD/JPY, EUR/JPY directly on forex platforms, suitable for those wanting to catch rate fluctuations, with 24-hour trading and both long and short opportunities.

Common questions for beginners

Q: What’s the difference between cash rate and spot rate?
Cash rate is the buy/sell rate for physical bills and coins, available instantly but usually 1-2% worse than the market rate. Spot rate is for electronic transfers, settled in 2 working days, closer to international market prices, thus better. Simply put, one is instant but costly, the other takes 2 days but is cheaper.

Q: How much JPY can I get with 10,000 NT?
Using Taiwan Bank’s cash rate of 4.85, 10,000 NT can buy about 48,500 JPY. Using online spot exchange at 4.87, it’s about 48,700 JPY—just 200 JPY difference (about NT$40). Small difference, but for 50,000 NT, it can save hundreds.

Q: What’s the limit for foreign currency ATM withdrawals?
Starting 2025, banks have adjusted limits. CTBC and Taishin set around NT$120,000-150,000 equivalent; E.SUN ranges from NT$50,000 to NT$150,000 depending on the card. It’s recommended to split withdrawals or use your own bank card to avoid the 5 NT cross-bank fee (small but adds up if frequent).

Summary: Using the right method makes JPY investment easy

JPY is no longer just for travel pocket money. With NT dollar depreciation, it can also hedge your risks. Whether traveling or small investments, remember the principles of “batch exchange + reinvestment” to minimize costs and maximize returns.

For beginners, the simplest approach: use Taiwan Bank’s online exchange to pick up at the airport, or use foreign currency ATMs for emergencies. Once familiar, try online staggered exchange, then consider JPY fixed deposits or ETFs for long-term holdings. This way, you get more value from your trips and add a layer of protection during market volatility.