Comprehensive Guide to Japanese Yen Exchange: 4 Methods Cost Comparison, Teaching You How to Save Money

The NT dollar to Japanese yen exchange rate has reached 4.85, up 8.7% from 4.46 at the beginning of the year. Many people are starting to seriously consider exchanging for yen. But the question is, how to exchange without paying extra for a cup of bubble tea?

First, look at the cost differences among 4 exchange methods

Exchanging 50,000 NT dollars for yen incurs significantly different losses depending on the channel:

Counter cash exchange: Loss of NT$1,500-2,000 (cash selling rate difference plus possible handling fees)

Online currency exchange + in-person withdrawal: Loss of NT$500-1,000 (better exchange rate, but withdrawal fees apply)

Online settlement + reservation pickup: Loss of NT$300-800 (the most cost-effective way before traveling abroad)

Foreign currency ATM instant withdrawal: Loss of NT$800-1,200 (convenient but limited locations)

For small investors, choosing the right exchange method can save hundreds to nearly a thousand NT dollars.

Why is now a good time to exchange for yen?

Exchange rate perspective: NT dollar depreciation support

In the second half of 2025, Taiwan’s foreign exchange demand is expected to grow by 25%, mainly because the yen’s exchange rate has large fluctuation potential and the NT dollar faces depreciation pressure. Compared to the start of the year, the yen has appreciated 8.7%, with further upside possible.

According to the latest hawkish signals from the Bank of Japan (BOJ), Governor Ueda hinted at a rate hike to 0.75% on December 19 (a 30-year high), with Japanese bond yields reaching 1.93%. This indicates the appeal of the yen as a financing currency is decreasing, but its status as a safe-haven asset remains strong.

Investment perspective: One of the three major safe-haven currencies

The yen, USD, and Swiss franc are considered global safe-haven currencies. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, successfully offsetting a 10% stock market decline. For Taiwanese investors, exchanging for yen is not just for travel but also for portfolio protection.

Detailed explanation of 4 exchange methods

1. Bank counter cash buy/sell

The most traditional method: bring cash NT dollars to the bank counter to exchange for yen notes.

Exchange rate: Cash selling rate (1-2% worse than spot rate)

Example with Taiwan Bank: As of 2025/12/10 9:18, cash selling rate is about 0.2060 NT$/yen (1 NT$ = 4.85 yen), so NT$10,000 can be exchanged for about 48,500 yen.

Comparison of cash selling rates across banks (2025/12/10):

Advantages: Safe, reliable, full denominations, staff assistance

Disadvantages: Poor rates, limited business hours (Weekdays 9:00-15:30), some banks charge handling fees

Suitable for: Urgent airport needs, elderly unfamiliar with online operations

2. Online exchange + in-person/ATM withdrawal

Transfer NT$ to yen in a foreign currency account via bank app or website, using the “spot sell rate” (about 1% better than cash selling rate), then withdraw cash at counter or foreign currency ATM.

Rate advantage: Spot rate closer to international market price; exchange rate margin and fees (from NT$100) apply at withdrawal

Scenario: Monitor rates, buy in batches when the NT$ to yen rate dips below 4.80, averaging costs

Advantages: 24/7 operation, flexible entry points, better rates

Disadvantages: Need to open a foreign currency account first, withdrawal fees (NT$5-100 cross-bank)

Suitable for: Those experienced with forex, wanting to invest in yen deposits (current annual interest 1.5-1.8%)

3. Online settlement + designated airport branch pickup

No need for a foreign currency account. Reserve online, fill in amount, select pickup branch (airport preferred), date, then bring ID and transaction notice to pick up in person.

Taiwan Bank “Easy Purchase” advantages:

• Handling fee NT$10 (via TaiwanPay) or free
• About 0.5% better exchange rate
• 14 pickup points at Taoyuan Airport, 2 open 24 hours

Reservation lead time: At least 1-3 days in advance

Advantages: Better rates, often no handling fee, airport pickup option, most convenient before travel

Disadvantages: Need prior planning, pickup during bank hours, branch cannot be changed on the spot

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

4. Foreign currency ATM instant withdrawal

Use a chip-enabled financial card to withdraw yen at foreign currency ATMs, available 24/7, cross-bank compatible (NT$5 cross-bank fee deducted from NT$ account).

Locations and limits: About 200 ATMs nationwide, major currencies supported, daily limits vary by bank

Example with E.SUN Bank: Daily limit equivalent to NT$150,000, no currency exchange fee

Notes:

• Japan ATM withdrawal services will be adjusted by end of 2025, requiring international cards (Mastercard/Cirrus)
• Cash may run out during peak times (especially airports, tourist spots), so withdraw early

Advantages: 24-hour real-time access, high flexibility, low fees from NT$ account

Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 yen), cash shortages possible

Suitable for: Those with no time to visit banks, urgent needs

When is the best time to exchange for yen?

Short-term volatility: USD/JPY dropped from 160 at the start of the year to 154.58, with short-term fluctuations possibly returning to 155, but medium to long-term forecasts suggest below 150. This indicates yen still has upside potential.

Interest rate hike cycle impact: BOJ rate hike expectations have risen to 80% (expected on Dec 19 to 0.75%), attracting funds seeking yield into yen assets.

Global arbitrage unwind risk: Japan’s long-term ultra-low interest rates have led investors to borrow low-interest yen to invest in higher-yield assets (US-Japan interest spread about 4%). If risks increase, unwinding positions could cause short-term volatility of 2-5%.

Recommendation: Don’t exchange all at once; buy in batches to catch dips and diversify risk.

After exchanging for yen, what next? Don’t let your money sit idle

Holding yen without earning returns is just holding cash. Consider these 4 allocation options:

Yen fixed deposit: Most stable, E.SUN/ Taiwan Bank foreign currency accounts, annual interest 1.5-1.8%, minimum 10,000 yen

Yen insurance policies: Cathay/Fubon savings insurance, guaranteed interest 2-3%, suitable for mid-term holding

Yen ETFs (00675U, 00703): Track yen index, can buy fractional shares, suitable for dollar-cost averaging, management fee about 0.4%

Forex swing trading: Directly trade USD/JPY or EUR/JPY, long and short, 24/7 trading, capture exchange rate fluctuations

Quick FAQs

What’s the difference between cash rate and spot rate?

Cash rate is the bank’s buy/sell rate for physical bills/coins, paid on the spot, convenient but 1-2% higher cost. Spot rate is the foreign exchange market’s T+2 settlement rate, more favorable but requires waiting, mainly used for electronic transfers and foreign currency accounts.

How much yen for 10,000 NT dollars?

Formula: Yen amount = NT$ amount × current rate

Using Taiwan Bank’s 4.85 rate on 2025/12/10, NT$10,000 ≈ 48,500 yen. Using spot rate 4.87, about 48,700 yen, difference roughly 200 yen (about NT$40).

What to bring for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. If pre-booked online, bring transaction notice. Under 20 needs parent’s consent; large amounts (>NT$100,000) may require source declaration.

Daily withdrawal limit at foreign currency ATMs?

Varies by bank (as of Oct 2025, many banks tighten security):

Use your own bank card to avoid NT$5 cross-bank fee. Plan ahead during peak times; cash may run out.

Final tips

Yen is no longer just “travel pocket money”; it’s also a hedge and investment asset. Whether traveling or hedging Taiwan stocks, following the principles of “batch exchange + don’t leave money idle” can lower costs and increase returns.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then move into deposits, ETFs, or swing trading based on needs. This way, you not only save on travel costs but also gain protection during global market fluctuations.