The most cost-effective way to exchange Japanese Yen in 2025: A comprehensive guide to 4 major exchange options

The NT$ to JPY exchange rate has reached 4.85, but do you really know how to exchange money most wisely?

This year, the Japanese Yen has appreciated by 8.7% since the beginning of the year, resulting in good exchange gains. But the key question is: with the same NT$50,000, paying at the counter might cost you an extra NT$1,500-2,000, while online currency exchange can save you half of that cost.

This article will directly tell you: the real costs, suitable scenarios, and how to avoid letting your money sit idle after exchange through 4 different methods.

Why is it worth exchanging for JPY? It’s not just for traveling

Many people think exchanging foreign currency is only for travel. But the Japanese Yen actually has two major attractions:

Travel and consumption: Most merchants across Japan still mainly accept cash (credit card penetration is only 60%), so shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa all require cash in Yen. Plus, Japanese purchasing agents, studying abroad, and part-time jobs keep the demand for Yen stable.

Investment and hedging: The Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). When stock markets fluctuate or geopolitical conflicts occur, funds tend to flow into Yen. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a week, while Taiwan’s stock index fell by 10%. For Taiwanese investors, exchanging NT$ for Yen is like adding insurance to their stock holdings.

Moreover, the Bank of Japan has recently adopted a hawkish stance, expected to raise interest rates to 0.75% in December (a 30-year high), which could further support the Yen.

Cost comparison of 4 methods to exchange for Yen

Getting straight to the point: using NT$50,000 as a benchmark, here are the real costs of each method.

Method 1: Counter exchange — the most traditional but most expensive

Go to a bank or airport counter to exchange NT$ cash for Yen notes.

For example, Taiwan Bank’s cash selling rate is about 0.2060 (NT$), meaning NT$1 exchanges for 4.85 Yen. Some banks also charge an additional NT$100-200 handling fee.

Using NT$50,000 this way, you lose about NT$1,500-2,000.

Advantages: Full denominations, in-person assistance, safest.

Disadvantages: Exchange rate is 1-2% worse than market rate, limited by business hours, fees eat into profit.

Suitable for: Urgent needs at the airport, infrequent currency exchange, elderly users.

Method 2: Online exchange + in-person withdrawal — an advanced approach

Via bank app or online banking, use the “spot sell rate” (about 1% better than cash rate) to convert NT$ into Yen in a foreign currency account. When cash is needed, withdraw at the counter or foreign currency ATM. Withdrawal incurs a spread fee (around NT$100+).

Loss is about NT$500-1,000.

Advantages: Can observe exchange rate trends, staggered entry, 24-hour operation, lower costs.

Disadvantages: Need to open a foreign currency account first, withdrawal fees apply.

Suitable for: Those with forex investment experience, planning to do Yen fixed deposits or long-term holdings.

Method 3: Online currency exchange — the best pre-departure plan

No need for a foreign currency account. Simply fill in the amount, select pickup branch and date on the bank’s website, then bring ID and transaction notification to the counter to pick up cash.

Taiwan Bank’s “Easy Purchase” online exchange fee is waived (pay NT$10 via Taiwan Pay), with about 0.5% favorable rate. Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours), allowing direct pickup at the airport.

Loss is about NT$300-800, the lowest cost.

Advantages: Best exchange rate, often no handling fee, airport pickup option, reservation system avoids sold-out cash.

Disadvantages: Need to book 1-3 days in advance, pickup only during business hours, branch cannot modify.

Suitable for: Planned trips, travelers wanting to withdraw directly at the airport.

Method 4: Foreign currency ATM — for urgent needs

Use a chip-enabled debit/credit card at a foreign currency ATM to withdraw Yen cash, available 24/7. From NT$ account, only NT$5 cross-bank fee. E.SUN Bank’s daily limit is NT$150,000.

Loss is about NT$800-1,200.

Advantages: 24/7 instant access, nearby locations, lowest cross-bank fee.

Disadvantages: Limited nationwide (about 200 ATMs), fixed denominations (only 1,000/5,000/10,000 Yen), cash may run out during peak times.

Suitable for: Those who don’t have time to visit banks, urgent needs during work.

Is it worthwhile to exchange Yen now?

Short answer: Yes, but operate in batches.

The NT$ to Yen rate of 4.85 has appreciated 8.7% from early this year’s 4.46. But Yen fluctuations are still large, and in the short term, it may oscillate between 154-155.

The Bank of Japan is poised to raise rates, with USD/JPY dropping from 160 to 154.58 since the start of the year, with medium- to long-term forecasts below 150. This favors a Yen bullish trend.

Additionally, compared to USD/KRW or USD other currencies, Yen’s safe-haven attribute is stronger, making it suitable for allocation.

Recommendation: Enter gradually, don’t exchange all at once. Use online currency exchange to buy in stages, averaging your cost.

What to do after exchanging Yen? Don’t let your money sit idle

If you just leave it, you’re giving up opportunity costs. Consider:

Yen fixed deposits: The most stable, with annual interest rates of 1.5-1.8%, starting from 10,000 Yen.

Yen insurance policies: Savings insurance with guaranteed interest of 2-3%, medium-term holding.

Yen ETFs (like 00675U, 00703): Track Yen index, can be dollar-cost averaged, management fee around 0.4%.

Forex trading: Play swing trades, trade USD/JPY or EUR/JPY, zero commission, low spreads, suitable for advanced traders.

Choose based on your risk appetite. For hedging, fixed deposits are best; for higher returns, consider ETFs or small swing trades.

Quick FAQs

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

Cash rate is for physical cash transactions, convenient but 1-2% worse than market rate. Spot rate is for electronic transfers settled within 2 business days, more favorable but requires waiting.

Q: How much Yen do I get for NT$10,000?

At 4.85 rate, about 48,500 Yen (using spot rate 4.87, about 48,700 Yen, difference of 200 Yen or NT$40).

Q: What to bring for counter exchange?

ID card + passport. Under 20 needs parent’s accompaniment. Large amounts (over NT$100,000) may require declaration forms.

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

Varies by bank. CTBC, Taishin about NT$120,000-150,000; E.SUN about NT$50,000-150,000. Post-2025, limits often reduced to NT$100,000-150,000. It’s recommended to split withdrawals or use your own bank card.

Final advice

Yen is no longer just “pocket money for travel,” but also an asset for hedging and investment.

For beginners: Taiwan Bank online exchange + airport pickup — low cost, most convenient. Experienced users can play Yen fixed deposits + ETF dollar-cost averaging, hedging while earning interest.

Follow the principles of “batch entry + rebalancing after exchange,” not only saving money abroad but also adding a layer of protection during global market volatility.