Japanese Yen Exchange Guide: Comparing the Costs of 4 Methods – Is Now the Right Time to Exchange?

By the end of 2025, the NT dollar to Japanese Yen has surged to 4.85, affecting not only travelers but also risk-averse investors. But did you know? Choosing the wrong currency exchange channel can cost you an extra NT$2,000 in fees and exchange rate differences.

We’ve compiled a real cost comparison of three major methods: bank exchange, foreign currency ATMs, and online currency conversion, and will tell you whether now is a good time to exchange JPY, as well as how to keep your money growing after the exchange.

Why pay attention to JPY exchange?

First, understand that exchanging JPY isn’t just for traveling abroad. From a market perspective, the Yen is one of the three major safe-haven currencies globally (along with USD and Swiss Franc), long used by institutional investors for risk hedging. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week while the stock market fell 10%, demonstrating the power of safe-haven assets.

For Taiwanese investors, as the NT dollar faces depreciation pressure, appropriately allocating JPY can diversify risk and participate in arbitrage opportunities from the Bank of Japan’s rate hike cycle. Japan’s interest rates have risen from 0.5% to 0.75% (a 30-year high), with the USD/JPY interest rate differential still offering about 4% arbitrage space.

Additionally, the JPY’s performance relative to other Asian currencies like the RMB is also relevant. When the NT dollar, RMB, and other emerging market currencies come under pressure, the Yen often strengthens countercyclically.

Exchanging NT$50,000 for JPY: Which channel is cheapest?

Based on NT$50,000, here’s the actual cost for each method:

In-person currency exchange: Loss of NT$1,500-2,000

Go directly to a bank or airport cash exchange, using the “cash selling rate,” which is about 1-2% worse than the spot rate. Taiwan Bank’s rate on December 10 was 1 JPY = NT$0.2060. Additional fees depend on the bank. Pros: safe and reliable. Cons: most expensive, only recommended for emergencies at the airport.

Foreign currency ATM: Loss of NT$800-1,200

Use a chip-enabled bank card at a foreign currency ATM, open 24/7, with a cross-bank withdrawal fee of NT$5. E.SUN Bank’s daily withdrawal limit is NT$150,000, with no currency exchange fee. Cons: limited locations (about 200 nationwide), cash often sold out during peak times, and fixed denominations of 1,000/5,000/10,000 JPY.

Online currency conversion + in-person withdrawal: Loss of NT$500-1,000

Convert via bank app at the spot rate (about 1% better than cash rate). If cash is needed, withdraw at the counter, incurring a currency exchange fee starting around NT$100. E.SUN Bank and Mega International Bank support this method. Advantage: better rates and flexible batching, suitable for forex beginners.

Online currency settlement + airport pickup: Loss of NT$300-800 (most recommended)

No foreign currency account needed. Use Taiwan Bank’s “Easy Purchase” online platform to settle at a rate about 0.5% better than the spot rate. Pay NT$10 fee via TaiwanPay (or free). Reserve pickup at Taoyuan Airport, which has 14 Taiwan Bank counters, including 2 open 24 hours. This is the most cost-effective way before traveling.

Is now a good time to exchange for JPY?

Short answer: Yes, but do it in batches.

By the end of 2025, NT$ to JPY is 4.85, up from 4.46 at the start of the year—an 8.7% appreciation. The Yen’s rise is driven by three factors:

1. Hawkish shift by the Bank of Japan: Governor Ueda’s recent hawkish comments raised rate hike expectations to 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%.

2. U.S. rate cut cycle begins: The USD has weakened relative to other currencies, supporting the Yen. USD/JPY has fallen from a high of 160 at the start of the year to 154.58.

3. Rising risk aversion: In the second half of the year, forex demand in Taiwan increased by 25%, mainly due to travel recovery and institutional risk hedging.

Mid-term outlook: USD/JPY may fluctuate around 155 in the short term, but long-term forecasts suggest it could fall below 150. It’s advisable to buy in batches, exchanging a little each week or month, to avoid being caught in a full conversion at a less favorable rate.

After exchanging for JPY, don’t let it just sit idle

Once you have JPY, leaving it idle wastes the benefits of the rate hike cycle. Here are four ways for beginners to grow their funds:

JPY fixed deposit: The safest. Open a foreign currency account at E.SUN or Taiwan Bank, with a minimum of 10,000 JPY, offering annual interest rates of 1.5-1.8%. Suitable for capital preservation.

JPY insurance policy: Medium-term gains. Cathay and Fubon Life offer JPY savings insurance with guaranteed interest rates of 2-3%, locking in for 3-5 years.

JPY ETFs: Growth-oriented. Yuanta’s 00675U tracks the JPY index, with a management fee of 0.4%. Can be bought as fractional shares via brokerage apps for dollar-cost averaging, suitable for those optimistic about the Yen’s medium-term rise.

Forex swing trading: High risk, high reward. Trade USD/JPY or EUR/JPY on forex platforms (like Mitrade), with long and short positions, 24-hour trading. Offers zero commission, low spreads, and stop-loss/take-profit tools. Suitable for experienced traders.

What to bring for in-person currency exchange? How much money?

Required documents: ID card + passport (foreigners: passport + residence permit). If pre-booked online, also bring transaction notification.

Large amount declaration: Over NT$10 million must declare source of funds. Under 20 years old need parental consent and declaration.

Withdrawal limits (2025 new rules): Many banks’ ATM daily limits are now NT$100,000-150,000. It’s recommended to use your own bank card to avoid cross-bank fees or to split withdrawals over multiple days.

Cash rate vs. spot rate, what’s the difference?

Cash rate: The rate banks offer for physical cash (notes/coins). When exchanging cash on the spot, the rate is usually 1-2% worse than the market rate. Suitable for travel.

Spot rate: The foreign exchange market’s rate for settlement within two business days (T+2). Used for electronic transfers and non-cash settlement, closer to international market prices. Suitable for forex accounts, import/export businesses.

Example: NT$10,000 exchanged at the cash rate yields about 48,500 JPY; at the spot rate, about 48,700 JPY—a difference of 200 JPY (roughly NT$40). Small for small amounts, but significant for large exchanges.

Common pitfalls in exchanging for JPY

Trap 1: Ignoring foreign currency ATMs’ shortages

Only about 200 ATMs nationwide. During peak times (airports, year-end), cash can run out. Don’t wait until the day before your trip; confirm availability at least 3 days in advance.

Trap 2: Daily withdrawal limits

Post-new rules, many banks’ ATM daily limits are NT$100,000-150,000. To exchange more, split over multiple days or pre-arrange online currency conversion.

Trap 3: Using credit cards for currency exchange

Some credit cards charge 3-5% fee for overseas cash withdrawals in JPY, much higher than the NT$5 cross-bank ATM fee. Not cost-effective.

Summary: A quick guide for beginners

Step 1: Decide your purpose (travel vs. investment) and amount (small vs. large).

Step 2: If time permits → use Taiwan Bank’s online currency settlement + airport pickup (most economical). If in a hurry → use foreign currency ATM (24/7, flexible).

Step 3: After exchange → for short-term use, cash is fine. For medium-term holding, consider fixed deposits or ETFs for growth.

Step 4: Batch your exchanges. Don’t convert everything at once; do it weekly or monthly to average costs and reduce exchange rate risk.

The Yen has evolved from a “travel pocket money” to a “risk asset.” By following the principles of batching and growth, you can add an extra layer of protection amid global market turbulence.