How to exchange Japanese Yen most cost-effectively? 4 Methods Comparison of Costs and Practical Guide

December 10, 2025, the exchange rate of New Taiwan Dollars (NTD) to Japanese Yen (JPY) reaches 4.85. Many people are preparing to exchange JPY during this wave of market movement. But did you know? Simply choosing different exchange channels can result in cost differences of over 1,500 NT$. We have summarized the latest 4 methods, from bank counter exchanges to foreign currency ATMs, to help you figure out which is the most cost-effective.

Why is it worth exchanging for JPY? Multiple uses from travel to hedging

When it comes to exchanging foreign currency, Taiwanese people most often think of JPY. This is no coincidence, as the application scenarios for JPY are indeed broad.

Everyday life: Traveling to Japan, purchasing cosmetics and medicines, studying abroad, and part-time work all require JPY cash. Most Japanese stores still prefer cash transactions (credit card penetration is only 60%), making JPY a necessity.

Investment: The Japanese Yen ranks among the world’s three major safe-haven currencies (alongside USD and Swiss Franc) due to Japan’s stable economy and manageable debt levels. During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in one week, successfully hedging a 10% decline in the stock market. For Taiwanese investors, exchanging for JPY adds an extra layer of insurance to hedge against Taiwan stock market fluctuations.

Additionally, the Bank of Japan maintains an ultra-low interest rate policy (only 0.5%), making the Yen a financing currency for arbitrage trading. Many traders borrow low-interest Yen to buy higher-yield USD (USD-JPY interest rate differential of 4.0%), then close positions and buy back when risks increase.

Complete comparison of 4 JPY exchange methods

Many think that exchanging JPY is just “taking money to the bank,” but choosing the wrong method can multiply costs.

Method 1: Bank counter—most traditional but most expensive

Carry NT$ cash directly to a bank branch or airport counter to exchange for JPY cash. This method is safe and convenient, but uses the “cash selling rate” (about 1-2% worse than the spot rate), resulting in higher overall costs.

For example, Taiwan Bank’s rate on December 10, 2025, at 9:18 AM, is approximately 0.2060 NT$/JPY (about 4.85 JPY per NT$). Some banks also charge fixed handling fees, further increasing expenses.

Advantages: Safe, full denominations, in-person assistance. Disadvantages: Less favorable rates, limited business hours (9:00-15:30 on weekdays), additional handling fees increase costs. Suitable for: Those unfamiliar with online operations or needing small, urgent exchanges. Estimated cost (NT$50,000): Loss of 1,500-2,000 NT$.

Method 2: Online exchange + withdrawal—investment option

Use online banking app to convert NT$ to JPY, depositing into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, you can withdraw in person or via foreign currency ATM, but this incurs exchange spread fees (starting around NT$100).

This method is suitable for investors wanting to enter gradually, observing exchange rate trends. When NT$ to JPY drops below 4.80, entering in stages can effectively lower the average cost.

Advantages: 24/7 operation, supports phased entry for average cost, relatively favorable rates. Disadvantages: Need to open a foreign currency account first; withdrawal cash incurs additional fees. Suitable for: Those experienced in forex, planning long-term JPY investments. Estimated cost (NT$50,000): Loss of 500-1,000 NT$.

Method 3: Online currency settlement + airport pickup—best pre-departure booking

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After completion, bring ID and transaction notification to pick up in person. Taiwan Bank and Mega International Bank offer this service, with 14 Taiwan Bank branches at Taoyuan Airport (2 open 24 hours).

Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (pay NT$10 via TaiwanPay), with about 0.5% rate advantage. This is the best way for planned trips abroad.

Advantages: Favorable rates, often no handling fee, can specify airport pickup. Disadvantages: Requires prior reservation (at least 1-3 days), pickup during bank hours only. Suitable for: Travelers with detailed planning, wanting to pick up cash at the airport. Estimated cost (NT$50,000): Loss of 300-800 NT$.

Method 4: Foreign currency ATM—24-hour quick withdrawal

Use a chip-enabled financial card at a foreign currency ATM to withdraw JPY cash. Supports 24-hour operation, with only NT$5 cross-bank fee. Highly flexible, ideal for urgent needs.

SinoPac Bank’s foreign currency ATMs allow withdrawal from NT$ accounts, with a single-day limit of NT$150,000 and no exchange fee. Note that Japan’s ATM withdrawal services will be adjusted by the end of 2025, requiring an international card (Mastercard/Cirrus).

Foreign currency ATMs have limited cash supplies (usually major currencies like JPY). There are about 200 nationwide. Do not wait until the last minute to withdraw, as cash may run out during peak times (especially at airports and popular spots).

Advantages: Instant withdrawal, 24/7 flexibility, deduct from NT$ account with no exchange fee. Disadvantages: Limited ATMs and denominations (fixed 1,000/5,000/10,000 JPY), may run out during peak times. Suitable for: Those with no time to visit banks or needing immediate cash. Estimated cost (NT$50,000): Loss of 800-1,200 NT$.

Summary table of 4 exchange methods

Is it worthwhile to exchange JPY now? Market timing analysis

On December 10, 2025, the NT$ to JPY rate is about 4.85, up approximately 8.7% from 4.46 at the start of the year. Under NT$ depreciation pressure, this exchange gain is quite significant. In the second half of the year, forex demand in Taiwan increased by 25%, mainly driven by travel recovery and hedging needs.

Short-term trend: JPY exchange rate remains volatile. The US entering a rate cut cycle supports JPY, while the Bank of Japan is on the verge of raising rates. BOJ Governor Ueda recently made hawkish comments, pushing rate hike expectations to 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (30-year high), with Japanese bond yields reaching a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now.

Medium to long-term outlook: Short-term fluctuations may bring it back to 155, but medium to long-term forecasts are below 150. As a safe-haven currency, JPY is suitable for hedging Taiwan stock market volatility, but watch out for arbitrage unwinding risks, which could cause 2-5% swings.

Advice: Phased entry is best; avoid exchanging all at once.

Strategies to increase value after exchanging for JPY

Having converted to JPY, money can sit idle without interest. Consider stable income or growth investments. Here are 4 common options:

1. JPY fixed deposit: Stable, open with E.SUN/Taiwan Bank online accounts, starting from 10,000 JPY, with annual interest rates of 1.5-1.8%.

2. JPY insurance policy: Medium-term holding, savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%.

3. JPY ETFs: Growth-oriented, such as Yuanta 00675U tracking JPY index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging, with an annual management fee of 0.4%.

4. Forex trading: Directly trade USD/JPY or EUR/JPY on forex platforms. Advantages include two-way trading, 24-hour operation, and small capital requirements.

While JPY is a strong hedging asset, it also experiences two-way volatility. Rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may suppress gains. For investment, JPY ETFs can diversify risk; for intraday or swing trading, USD/JPY and EUR/JPY forex trading are classic ways to capture exchange rate movements.

FAQs

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate applies to physical cash buying and selling, with the advantage of immediate delivery and portability, but typically 1-2% worse than the spot rate, plus possible higher fees. Spot rate is the market rate for settlement within two business days, used for electronic transfers, offering better rates close to international market prices, but involves T+2 settlement.

Q: How much JPY can I get with NT$10,000?
Refer to current rate. Formula: JPY amount = NT$ amount × current rate. Using Taiwan Bank’s December 10, 2025, cash selling rate (~4.85), NT$10,000 can get about 48,500 JPY. Using the spot rate (~4.87), about 48,700 JPY, difference roughly 200 JPY.

Q: What documents are needed for counter exchange?
Taiwanese: ID card + passport. Foreigners: passport + residence permit. For online reservations, bring transaction notification. Under 20 requires parental consent; large exchanges over NT$100,000 may require source of funds declaration.

Q: Are there limits on foreign currency ATM withdrawals?
Different banks have different limits. CTBC: equivalent NT$120,000 per day; Taishin: NT$150,000; E.SUN: NT$150,000. After 2025, many banks have strengthened anti-fraud measures, with digital account limits reduced to NT$100,000 per day. It’s recommended to diversify withdrawals or use your own bank card to avoid NT$5 cross-bank fee per transaction.

Conclusion: Master two principles to minimize exchange costs

JPY is no longer just “pocket money” for travel but a valuable asset for hedging and investment. Whether preparing for travel or hedging against NT$ depreciation by converting to JPY, following the two principles of “phased exchange + not sitting idle after exchange” can minimize costs and maximize gains.

Beginners are advised to start with the simplest options like “Taiwan Bank online currency settlement + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or even small forex trades based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.