Japanese Yen Exchange Quick Guide: 4 Major Methods Cost Test, Online Currency Conversion is the Most Cost-Effective

Why Should You Pay Attention to the Yen Now?

As of December 10, 2025, the NT$ to JPY exchange rate has risen to 4.85, an 8.7% appreciation from the 4.46 level at the beginning of the year. But this is not just a change in exchange rate figures; it reflects the global economic restructuring and the reality that Taiwanese investors must face — the continued pressure of NT$ depreciation.

Against this backdrop, the Japanese yen has evolved from a simple “travel pocket money” into a strategically significant asset allocation option. As one of the world’s three major safe-haven currencies (USD, Swiss Franc, JPY), the yen not only meets daily needs such as travel, shopping, and studying abroad but also serves as a hedge during Taiwan stock market volatility.

Market observations show that Taiwan’s foreign exchange demand in the second half of the year has grown by 25%, driven by both the recovery of tourism and investors’ risk management considerations. As the US enters a rate-cut cycle and the Bank of Japan is about to raise interest rates, the attractiveness of the yen further increases.

Three Main Reasons to Invest in the Yen

Safe-Haven Preference: During market turbulence, funds flow into the yen. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully buffering stock market declines. For Taiwanese investors, holding yen is equivalent to adding an extra layer of asset protection.

Interest Rate Arbitrage Opportunities: Japan has maintained ultra-low interest rates (currently 0.5%), creating an arbitrage space with the US’s 4% rate differential. The Bank of Japan Governor Ueda Kazuo’s hawkish comments have pushed market expectations of rate hikes to 80%, with a projected increase to 0.75% on December 19 (a 30-year high). Future changes in the interest rate gap will create trading opportunities.

Potential for Currency Appreciation: The USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150. This indicates potential for yen appreciation against the dollar.

Four Ways to Exchange Yen, with Significant Cost Differences

Method 1: In-person cash exchange — the most traditional, highest cost

Carry NT$ to a bank or airport counter and exchange for yen cash on the spot. This method uses the “cash selling rate,” which is about 1-2% worse than the spot rate. For example, Taiwan Bank’s rate on December 10, 2025, was approximately 0.2060 NT$ per yen (equivalent to 4.85 yen per NT$). Including some banks’ additional handling fees, the cost for exchanging NT$50,000 is estimated to lose about NT$1,500-2,000.

Best for: Urgent needs at the airport, elderly unfamiliar with online operations.

Method 2: Online currency exchange, then in-person or ATM withdrawal — balanced approach

Transfer NT$ into a foreign currency account via bank app, using the spot selling rate (about 1% better than cash rate). Then, withdraw cash in person at a counter or via foreign currency ATM as needed. This process allows you to observe exchange rate trends, enter gradually at low points (e.g., when NT$ to yen is below 4.80), averaging costs, and pay only a small handling fee (from NT$100) when withdrawing. Cost for exchanging NT$50,000 is about NT$500-1,000.

Best for: Investors with forex experience wanting to build positions gradually; those planning to invest in yen fixed deposits (annual interest 1.5-1.8%).

Method 3: Online currency settlement — the best option before traveling abroad

Currently the most cost-effective method. No need to open a foreign currency account in advance. Fill in currency, amount, branch, and date on the bank’s website, complete online settlement, then bring ID and transaction notification to the branch for pickup. Taiwan Bank’s “Easy Purchase” online settlement is fee-free, with a NT$10 fee via Taiwan Pay, and about 0.5% exchange rate advantage. There are up to 14 airport locations (including 2 24-hour branches), greatly enhancing convenience. Cost for exchanging NT$50,000 is only NT$300-800.

Best for: Travelers with a planned schedule, booking 1-3 days before departure, wanting to pick up cash directly at the airport. This is the most recommended entry-level option for beginners.

Method 4: Foreign currency ATM — instant but limited locations

Use a chip-enabled bank card to withdraw yen cash at foreign currency ATMs, supporting 24-hour operation. Deducts only NT$5 cross-bank fee from your NT$ account. E.SUN Bank’s foreign currency ATM has a daily withdrawal limit of NT$150,000 equivalent, with no additional exchange fee. However, there are about 200 foreign currency ATMs nationwide, with fixed denominations of 1,000, 5,000, and 10,000 yen. During peak times (e.g., at airports), cash may be sold out. Cost for exchanging NT$50,000 is about NT$800-1,200.

Best for: Urgent needs, no time for reservations, requiring 24-hour service.

Bank Exchange Rate Comparison (as of December 10, 2025)

Source: Official websites of banks, updated December 10, 2025.

Is Now a Good Time to Exchange? The Key Is in Staggered Strategy

Short-term view: The yen is in a volatile range. The Bank of Japan’s rate hike expectations support the yen, but global arbitrage unwinding could trigger 2-5% fluctuations. Short-term risks and opportunities coexist.

Medium to long-term view: USD/JPY forecast below 150, with yen appreciating against the dollar. For hedging purposes, the yen indeed has strategic value.

Core advice: Do not exchange all at once; adopt a staggered approach. Enter the market in multiple batches within the NT$4.75-4.90 range, reducing costs and managing exchange rate fluctuations.

After Exchanging Yen, Don’t Let Your Money Sit Idle

Once exchanged, you can allocate according to your risk preference:

Conservative: Yen fixed deposit (minimum 10,000 yen, annual interest 1.5-1.8%)
Mid-term: Yen savings insurance (guaranteed interest rate 2-3%)
Growth: Yen ETFs, such as Yuanta 00675U (tracking yen index, annual management fee 0.4%)
Trading: Forex trading platforms for USD/JPY or EUR/JPY swing trading (long and short, 24-hour trading)

Quick FAQs

What is the difference between cash rate and spot rate?
Cash rate applies to physical cash, with the advantage of immediate delivery but usually 1-2% worse than the spot rate. Spot rate is used for electronic transfers (T+2 settlement) and offers better rates.

How much yen for NT$10,000?
Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, NT$10,000 exchanges for about 48,500 yen; with the spot rate of about 4.87, it’s roughly 48,700 yen.

What to bring for in-person exchange?
Taiwanese need to bring ID + passport. If booking online (online settlement), also bring transaction notification. Under 20 years old requires a parent’s accompaniment; amounts over NT$100,000 may require source of funds declaration.

Are there limits on foreign currency ATM withdrawals?
From 2025, most banks have a daily limit of NT$100,000-150,000 equivalent on their own cards, with cross-bank limits depending on issuing bank. It’s advisable to split withdrawals to avoid cash shortages during peak times.

Summary: Master Three Keys to Avoid Losing Out in Yen Exchange

First, choose the right channel: Online settlement combined with airport pickup offers the lowest cost and greatest convenience.

Second, stagger your entries: Exchange in multiple batches within the NT$4.75-4.90 range to avoid single-point risks.

Third, plan after exchange: Don’t let yen sit idle; invest in fixed deposits, ETFs, or forex trading based on your needs to keep your funds growing.

Yen is no longer just travel pocket money; it’s an important tool for hedging NT$ depreciation risk and participating in global markets. By following the “online settlement + staggered exchange + post-exchange allocation” three-step approach, you can minimize costs and maximize returns. Whether for next year’s travel or asset allocation, you can handle it with confidence.