The ultimate guide to the four major ways to exchange Japanese Yen: How to choose the least loss-making option

In December 2025, the NT dollar has risen above 4.85 against the Japanese Yen. Many are eager to travel abroad or position themselves in hedging assets. But do you know? Choosing the wrong currency exchange channel can cost you thousands more in the spread. For example, exchanging JPY at a bank counter versus online can differ by over 1,200 NT dollars in costs.

In this article, we’ll get straight to the point, using actual rates to show you the real costs of four different exchange methods, helping you save money and time.

Four Practical Currency Exchange Comparisons

Method 1: Bank Counter Exchange (Most traditional, highest cost)

Bring cash NT dollars directly to a bank or airport counter to exchange for cash JPY on the spot. While this method is straightforward, it uses the “cash selling rate” (about 1-2% worse than market rate), plus possible service fees, making it the least cost-effective.

As of December 10, 2025, Taiwan Bank’s rate shows a cash selling rate of about 0.2060 NT$/JPY (roughly 4.85 JPY/NT$). If you exchange at E.SUN or Cathay United Bank counters, you’ll pay an additional 100-200 NT dollars in fees.

Exchanging 50,000 NT dollars results in a loss of about 1,500-2,000 NT dollars. This fee isn’t just a service charge; it’s a “spread difference fee.”

Who’s it suitable for: Travelers unfamiliar with online operations, last-minute airport exchanges, small amounts for emergencies.

Method 2: Online FX Settlement + Airport or Branch Pickup (Most practical)

No need to open a foreign currency account beforehand. Simply fill out the exchange info via bank app or website, then bring your ID and notification slip to a designated branch to pick up. Taiwan Bank’s “Easy Purchase” service is an example, offering about 0.5% better rates, with only NT$10 fee if paying via Taiwan Pay.

The biggest advantage is the ability to reserve airport pickup—Taoyuan Airport has 14 Taiwan Bank locations, 2 of which operate 24 hours, allowing you to withdraw cash immediately after landing, saving the hassle of traveling into the city.

Exchanging 50,000 NT dollars costs about 300-800 NT dollars, more than half cheaper than counter exchange.

Who’s it suitable for: Planning travelers, those who can reserve 1-3 days in advance, or investors wanting to pick up cash directly at the airport.

Method 3: Online FX + Foreign Currency Account (Ideal for frequent foreign currency users)

Transfer NT dollars to a foreign currency account via online banking to hold JPY, enjoying “spot sell rate” advantages (about 1% better than cash sell). If you withdraw cash later at ATMs or counters, additional spread and fee apply (starting around NT$100).

This method’s advantage is observing exchange rate trends, allowing you to buy in batches at low points (e.g., when NT$/JPY drops below 4.80), averaging costs. Plus, JPY in foreign accounts can be used for fixed deposits or insurance, with current annual interest rates around 1.5-1.8%, generating passive income.

Exchanging 50,000 NT dollars costs about 500-1,000 NT dollars.

Who’s it suitable for: Those experienced with forex, planning medium to long-term holdings, or wanting to earn interest while investing.

Method 4: 24-hour Foreign Currency ATM Withdrawal (Most flexible)

Use a chip-enabled financial card at foreign currency ATMs to withdraw cash JPY directly. Open 24/7, with only NT$5 fee for interbank withdrawals. E.SUN Bank’s foreign currency ATMs have a daily limit of NT$150,000, with no additional exchange fee.

The downside is limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 JPY), and potential shortages during peak times. It’s best not to wait until the last minute, especially in busy areas like airports.

Exchanging 50,000 NT dollars costs about 800-1,200 NT dollars.

Who’s it suitable for: People who don’t have time to visit banks, last-minute needs, or small cash requirements.

Cost Comparison Table (Based on 50,000 NT dollars)

Is it worthwhile to exchange JPY now? A staggered approach is most stable

Regarding exchange trends, the NT$/JPY has appreciated 8.7% in 2025 (from 4.46 at the start of the year to 4.85 now). This is a good entry point for Taiwanese investors wanting to hold JPY, especially amid NT$ depreciation pressures.

But don’t rush to exchange everything at once. The Bank of Japan is about to raise interest rates—Governor Ueda’s hawkish comments have pushed expectations of a 0.25 bps hike to 0.75% by December 19 (a 30-year high). While this supports the yen, short-term arbitrage may cause a 2-5% fluctuation as traders close positions.

Recommended approach: Exchange in parts weekly or monthly to avoid the peak. Keep an eye on the US rate cuts—if the US cuts faster and Japan raises rates, the yen’s appreciation could accelerate.

What to do after exchanging JPY? Don’t let it go to waste

Holding JPY isn’t the end of the story. Instead of just letting it sit idle, consider generating passive income or growth potential.

Yen fixed deposits (capital preservation)

Deposit into E.SUN or Taiwan Bank foreign currency accounts, starting from 10,000 JPY, with annual interest rates of 1.5-1.8%. Three months’ interest can earn a small profit.

Yen insurance policies (mid-term protection)

Cathay or Fubon life’s USD/JPY savings insurance, with guaranteed 2-3% interest, locking in profits over 6 years.

Yen ETFs (growth swing)

Yuanta 00675U tracks JPY movements, allowing fractional investment, with a management fee of 0.4% annually. When JPY appreciates, the value increases on paper; dollar-cost averaging reduces costs.

Yen forex trading (volatility capture)

Trade USD/JPY or EUR/JPY directly on forex platforms, with two-way trading 24/7. Suitable for advanced traders confident in short-term fluctuations. Zero-commission, low-spread platforms reduce trading costs.

International rate comparison: How to exchange HKD for RMB?

By the way, if you want to exchange HKD or RMB, the approach is similar. For example, 1,000 HKD for RMB is about 840 RMB (HKD depreciated). Counter exchange may cost you 200-300 NT$ in fees, but online FX settlement only about 50-100 NT$. Choosing the right channel saves money regardless of currency.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate is for physical cash exchange, allowing immediate receipt; spot rate is the market price for electronic transactions, better but requires T+2 settlement. In short, cash rate is what banks use to profit from you; the spot rate reflects the true international price.

Q. How much JPY can I get with 10,000 NT$?
At Taiwan Bank’s current rate of 4.85, about 48,500 JPY; at spot rate 4.87, about 48,700 JPY. The difference is roughly 200 JPY, equivalent to NT$40.

Q. What documents are needed for counter exchange?
ID + passport. If under a company name, bring business registration. If pre-booked online, bring transaction notification. Under 20 years old needs parental consent; over NT$100,000 must declare source of funds.

Q. What’s the daily withdrawal limit at foreign currency ATMs?
Varies by bank. Taiwan Bank’s card: about NT$120,000-150,000/day; other banks depend on issuing bank. E.SUN: about NT$50,000 per transaction, NT$150,000 per day. It’s best to split withdrawals to avoid limits.

Final advice

The JPY is no longer just for travel pocket money; it also has hedging and investment value. Whether traveling or asset allocation, remember: “Staggered exchange + don’t leave it idle” to lower costs and increase returns. Beginners can start with Taiwan Bank’s online FX + airport pickup or ATM, then move into fixed deposits, ETFs, or swing trading as needed. This way, you save money when traveling and add a layer of protection during global market fluctuations.