Japanese Yen Exchange Guide: Comparing the Costs of 4 Major Channels, Find the Most Cost-Effective Method Here

Why is exchanging for Japanese Yen cost-effective? Timing is key

This year, the Taiwan dollar has appreciated to 4.85 against the Japanese Yen, compared to 4.46 at the beginning of the year, an accumulated appreciation of about 8.7%. For those planning to hedge assets or travel to Japan, entering the market at this point indeed offers exchange rate gains.

The reason the Yen is gaining attention is not only because of Japan’s high tourism popularity but also because of its financial attributes:

Safe-haven currency status: The Yen, along with the US dollar and Swiss franc, is one of the world’s three major safe-haven currencies. During market turbulence, funds tend to flow into the Yen for protection. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, successfully offsetting stock market declines. For Taiwanese investors, appropriately allocating Yen can help balance Taiwan stock market risks.

Arbitrage opportunities: The Bank of Japan has maintained ultra-low interest rates for a long time, making the Yen the cheapest “financing currency” for borrowing. Investors often borrow Yen at low interest and invest in higher-yield USD assets (the USD/JPY interest rate differential reaches 4.0%), then close positions when risks increase. Such arbitrage trades become especially active when central bank policies shift.

The 4 most common ways for Taiwanese to exchange for Yen

Just choosing different exchange methods can result in cost differences of NT$1,000 to NT$2,000 (based on NT$50,000 principal). Below is an analysis of actual rates and fees for each channel.

Method 1: Bank counter exchange—most traditional but most costly

Carry NT$ cash to a bank or airport counter to exchange for Yen cash. This method uses the “cash selling rate,” which is usually 1-2 percentage points worse than the spot market rate.

For example, Taiwan Bank’s rate on December 10, 2025, was about NT$0.2060 per Yen (i.e., NT$1 = 4.85 Yen). With NT$50,000, you get approximately 242,718 Yen. After fees, the cost loss is NT$1,500–NT$2,000. Some banks also charge a fixed fee of NT$100–NT$200 per transaction.

Advantages: Safe, reliable, full denominations, staff assistance on-site
Disadvantages: Large exchange rate spread, limited to bank hours (9:00-15:30 on weekdays), additional fees
Suitable for: Small, urgent cash exchanges, emergency airport needs

Method 2: Online currency exchange to deposit account—preferred by investors

Use bank apps or online banking to convert NT$ into Yen and deposit into a foreign currency account. This method uses the “spot selling rate,” which is about 1% better than cash selling. If you need to withdraw cash, you can do so at ATMs or counters, incurring additional fees (usually NT$100+).

Advantages include 24-hour operation, better exchange rates, and the ability to average costs through multiple purchases. For example, if you observe the rate below 4.80 and buy in installments, the long-term accumulated gains will be better than a one-time full exchange.

Yen deposited online can be directly invested in fixed deposits (most banks offer 1.5-1.8% annual interest) or purchased as Yen ETFs, allowing idle funds to generate returns.

Advantages: 24/7 operation, better rates, cost averaging possible
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply
Suitable for: Those with forex investment experience, long-term Yen holders

Method 3: Online currency exchange with airport pickup—best pre-departure plan

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to the counter for pickup. Taiwan Bank’s “Easy Purchase” service offers this, with a NT$10 fee for TaiwanPay payments and about 0.5% better rates.

Ideal for travelers planning ahead. Taoyuan Airport has 14 Taiwan Bank branches, two of which operate 24 hours, allowing direct pickup of Yen cash at the airport, saving waiting time.

Advantages: Better rates, often no or low fees, airport pickup option
Disadvantages: Need to book 1-3 days in advance, pickup time limited by bank hours
Suitable for: Planned travelers who want to pick up cash at the airport

Method 4: Foreign currency ATMs—most flexible for immediate needs

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash. Supports 24-hour operation, with a NT$5 fee for interbank withdrawals. E.SUN Bank’s foreign currency ATMs allow direct withdrawal from NT$ accounts, with a daily limit of NT$150,000 and no exchange fee.

Disadvantages include limited locations (about 200 nationwide) and fixed denominations (1,000, 5,000, 10,000 Yen). Cash shortages may occur during peak times. It’s recommended not to wait until the last minute before departure, especially at airports or stations.

Advantages: Instant withdrawal, high flexibility, low interbank fees
Disadvantages: Limited locations and denominations, possible cash shortages during peak hours
Suitable for: Those with no time to visit banks or sudden cash needs

Cost comparison of the 4 exchange methods

Based on NT$50,000 exchange, here’s a summary of actual costs and suitable scenarios:

The conclusion: Online currency exchange + airport pickup offers the lowest cost, followed by online exchange with installment averaging.

Is now a good time to enter? The central bank’s rate hikes boost the Yen

As of early December 2025, the NT$ to Yen rate remains at 4.85. Meanwhile, USD/JPY hovers around 154.58. This warrants analysis.

Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with expectations that the December 19 policy meeting will raise rates by 0.25 percentage points to 0.75% (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%, providing upward momentum for the Yen.

Looking longer-term, USD/JPY has fallen from a high of 160 at the start of the year to around 154 now. Short-term fluctuations may hover around 155, but the medium to long-term trend is expected to move below 150. This indicates room for Yen appreciation.

Investment advice: Staggered entry is key. Although the Yen is a safe-haven asset, it also experiences two-way volatility. Global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could temporarily depress the rate. It’s recommended to avoid full conversion at once, instead entering in 3-4 installments at different times to average costs and reduce risk.

What to do after exchanging Yen? Don’t let your money sit idle with no interest

Once the exchange is complete, Yen should not just sit in your account without earning interest. Based on holding period and risk appetite, here are some options:

Yen fixed deposit: The most conservative choice, starting from NT$10,000, with annual interest rates of 1.5-1.8%. Suitable for capital preservation and stable income.

Yen insurance policies: Companies like Cathay and Fubon offer Yen savings insurance with guaranteed rates of 2-3%, with a 3-5 year holding period, combining savings with insurance coverage.

Yen ETFs (e.g., Yuanta 00675U, Capital 00703): Track Yen indices, can be bought in fractional shares via brokerage apps, suitable for regular investment, with annual management fees around 0.4%.

Forex swing trading: Trade USD/JPY or EUR/JPY directly on platforms like Mitrade. Advantages include two-way trading, 24-hour operation, and small capital requirements. Platforms offer stop-loss, take-profit, and trailing stop tools, suitable for experienced traders.

The choice among these depends on your time commitment, risk preference, and capital size. Beginners with small funds should start with fixed deposits, then gradually explore ETFs or forex trading as your experience grows.

RMB remittance into Taiwan accounts—another foreign currency diversification approach

In addition to Yen, some investors transfer RMB into Taiwan accounts to diversify risk. Combining RMB and Yen allocations can create a more diversified hedging portfolio. However, RMB exchange rate fluctuations are relatively larger, suitable for advanced investors with views on China’s economy.

Quick Q&A on currency exchange

Q. How much Yen can NT$10,000 buy?
Using Taiwan Bank’s December 2025 cash selling rate of NT$4.85, NT$10,000 can buy about 48,500 Yen. Using the spot rate (~NT$4.87), it’s about 48,700 Yen, a difference of roughly 200 Yen.

Q. What’s the difference between cash rate and spot rate?
The cash rate is the bank’s buy/sell rate for physical cash, usually worse than the market spot rate but settled immediately. The spot rate is the foreign exchange market’s T+2 rate, closer to international prices but requires waiting.

Q. What to bring for counter exchange?
Locals: ID + passport; foreigners: passport + residence permit. If booked online, bring transaction notice. Under 20 needs parental accompaniment; large exchanges over NT$100,000 may require source of funds declaration.

Q. Are there daily limits for foreign currency ATMs?
Different banks have different limits. CTBC: NT$120,000/day equivalent; Taishin: NT$150,000/day; E.SUN: NT$150,000/day (including card transactions). It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees.

Summary

The Yen has evolved from a “pocket money” for travel to an asset with both hedging and investment value. Whether for next year’s Japan trip or to hedge against NT$ depreciation, applying the principles of “staggered exchange + don’t leave money idle” can minimize costs and maximize gains.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATMs,” then gradually move into fixed deposits, ETFs, or forex swing trading based on capital and risk appetite. This not only makes travel more cost-effective but also adds a layer of protection during global market turbulence.