Japanese Yen Exchange Guide: 4 Tips to Help You Save the Most Money

In December 2025, the exchange rate of New Taiwan Dollars (NTD) to Japanese Yen (JPY) is approximately 4.85. People planning to travel to Japan or hedge their investments are becoming more active. However, many are unaware that choosing the wrong exchange channel can cost an extra 2,000 NT dollars. So, how should you exchange JPY to avoid losing money? We will clarify from daily travel to investment perspectives.

Why Should You Pay Attention to JPY? It’s Not Just About Travel

Many think exchanging JPY is only for going abroad, but in reality, the uses of JPY go far beyond that.

Travel and Consumption Needs

Most stores in major Japanese cities (Tokyo, Osaka, Kyoto) still primarily use cash transactions, with only about 60% of merchants accepting credit cards. Whether shopping, dining, or lodging, cash JPY is essential. Additionally, many Taiwanese consumers love purchasing Japanese cosmetics, fashion, and anime merchandise, often paying directly in JPY.

Financial Investment Perspective: The Hedging Value of JPY

The Japanese Yen (JPY) is one of the world’s three major safe-haven currencies, alongside USD and Swiss Franc. During market turbulence, funds tend to flow into JPY for safety—during the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in one week, successfully offsetting stock market declines. For Taiwanese investors, allocating some assets in JPY can hedge against Taiwan stock market risks.

More importantly, the Bank of Japan has maintained an ultra-low interest rate (currently 0.5%) for a long time, making JPY an ideal “financing currency.” Many arbitrage traders borrow low-interest JPY to exchange for USD and invest in high-yield assets, with a USD-JPY interest rate differential reaching 4.0%.

Four Common Ways for Taiwanese to Exchange JPY

Just choosing different exchange channels can result in cost differences of over 1,000 NT dollars. Let’s analyze each.

Method 1: Bank Counter Cash Exchange — The Most Traditional but Most Expensive

Carry NT dollars cash to a bank or airport counter to exchange for JPY cash. It’s simple to operate, but uses the “cash selling rate” (1-2% worse than the spot rate), plus possible service fees, making it the most costly option.

For example, Taiwan Bank’s rate on December 10, 2025, shows a cash selling rate of about 0.2060 NT$ per JPY (i.e., 1 NT$ = 4.85 JPY).

Comparison of major banks’ counter exchange rates and fees (updated 2025/12/10):

Suitable for: Urgent needs at the airport, or elderly who are not comfortable with online operations.

Pros and Cons: Safe and reliable, denominations are complete, but the rate is the worst, and operation is limited to business hours (9:00-15:30).

Method 2: Online Currency Exchange + In-Person Cash Pickup — Balances Rate and Convenience

Use online banking or app to convert NT$ into JPY, deposit into a foreign currency account, enjoying the “spot sell rate” (about 1% better than cash selling rate). If cash is needed, pick it up at the counter or ATM, but fees apply (around 100 NT$ or more).

The biggest advantage is the ability to accumulate gradually during low exchange rates (when NT$ to JPY is below 4.80).

Pros and Cons: 24/7 operation, averaging cost over multiple entries, better exchange rates; but requires opening a foreign currency account first, and withdrawal fees are additional.

Suitable for: Investors experienced in forex, planning to hold JPY long-term.

Method 3: Online Currency Purchase — The Smartest Choice Before Traveling Abroad

No need for a foreign currency account. Simply fill in the amount and pickup location on the bank’s website, complete the transfer, and pick up with ID and transaction notice at the counter. Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (using TaiwanPay costs only 10 NT$), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank outlets (including 2 open 24 hours), ideal for pre-departure pickup.

Pros and Cons: Favorable rates, often no service fee, can specify airport pickup; but requires advance reservation (1-3 days), and pickup is limited to business hours.

Suitable for: Planned travelers who want to pick up cash at the airport.

Method 4: Foreign Currency ATM Withdrawal — Most Flexible but Limited Locations

Use a chip-enabled financial card to withdraw cash in JPY at bank foreign currency ATMs, available 24 hours. Deducted directly from NT$ account, cross-bank fee only about 5 NT$, no currency exchange fee.

SinoPac Bank’s foreign currency ATM has a daily withdrawal limit of about 150,000 NT$, with fixed denominations of 1,000/5,000/10,000 JPY. About 200 ATMs nationwide offer this service, but during peak times (like airports), cash may run out.

Pros and Cons: Instant withdrawal, high flexibility, low cross-bank fees; but limited locations, fixed denominations, and possible cash shortages during busy hours.

Suitable for: People who don’t have time to visit banks or need urgent cash.

Cost Comparison Table for the 4 Methods

Based on exchanging 50,000 NT$ (December 2025 data):

Is It a Good Time to Exchange JPY Now? Investment Timing Analysis

In December 2025, the NT$ to JPY rate is about 4.85, appreciating roughly 8.7% from the start of the year’s 4.46. This already yields significant forex gains for Taiwanese investors. Demand for forex exchange increased by 25% in the second half of the year, mainly driven by travel recovery and hedging needs.

Recent Market Factors

The Bank of Japan (BOJ) is on the verge of raising interest rates. Hawkish comments from Governor Ueda Kazuo have increased market expectations of a rate hike to 0.75% at the December 19 meeting (a 30-year high). The US is entering a rate cut cycle, while Japan’s BOJ is raising rates, supporting the Yen.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term, it may test 155, but long-term forecasts suggest below 150.

Investment Advice

Yes, exchanging JPY now is advantageous, but it’s better to do so gradually. The Yen’s short-term volatility can cause 2-5% swings during arbitrage closing. Avoid exchanging all at once; instead, diversify based on your needs and risk tolerance.

After Exchanging JPY — 4 Ways to Make Your Money Work

Don’t let your JPY sit idle without interest. Consider these stable or growth-oriented options:

1. JPY Fixed Deposit — Conservative Capital Preservation

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 risk-averse investors.

2. JPY Insurance Policies — Medium-term Holding

Buy savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%, combining protection and returns.

3. JPY ETFs (e.g., 00675U) — Growth-Oriented

Yuanta 00675U tracks the JPY index, can be purchased as fractional shares via broker apps, suitable for regular investment. Management fee only 0.4% annually.

4. Forex Trading USD/JPY — Swing Trading

Trade USD/JPY directly on forex platforms, with long and short options, 24-hour trading, and small capital requirements. Suitable for experienced traders.

While JPY has hedging features, it also involves two-way volatility risks. Global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could weaken JPY. Long-term holders should consider diversifying with JPY ETFs; short-term traders can capitalize on USD/JPY swings.

Common Questions Answered

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

Cash exchange rate applies to physical cash transactions; banks usually offer 1-2% worse than the market rate. Spot rate is the foreign exchange market’s T+2 settlement price, used for electronic transfers or foreign currency accounts, offering better rates. Simply put, cash is the most expensive, account transfers are the cheapest.

Q: How much JPY can I get with 10,000 NT$?

Using Taiwan Bank’s December 2025 rate and cash selling rate of 4.85, 10,000 NT$ exchanges for about 48,500 JPY. Using the spot rate (~4.87), it’s about 48,700 JPY, a difference of only 200 JPY.

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

Taiwanese: ID card + passport; foreigners: passport + residence permit. For online reservations, also bring transaction notice. For large amounts (over 100,000 NT$), may need to declare source of funds.

Q: Are there withdrawal limits at foreign currency ATMs?

Different banks have different limits. Since October 2025, most banks have adjusted limits. Our bank’s card limit is about 120,000-150,000 NT$ per day; others depend on issuing bank. It’s recommended to split withdrawals to avoid high cross-bank fees. During busy hours, cash may run out, so plan ahead.

Summary: Dual Strategy of Gradual Exchange + Value Enhancement

JPY is no longer just travel “pocket money”; it’s an asset with hedging and investment value. Since the start of the year, it has appreciated 8.7%, and USD/JPY forex gains are also noteworthy.

Whether for travel next year or hedging assets, the key is to follow the “gradual exchange + value growth” principles to minimize costs and maximize returns. Beginners can start with “Taiwan Bank online currency purchase + airport pickup” or “foreign currency ATM,” then transfer JPY into fixed deposits, ETFs, or swing trading based on needs.

This way, you not only enjoy more cost-effective travel but also add a layer of protection amid global market fluctuations.