Japanese Yen Exchange Guide: 4 Tips to Save Costs on Currency Exchange

The NT dollar to Japanese Yen exchange rate has reached the 4.85 threshold, and the demand for travel to Japan and Yen asset allocation is heating up. But did you know? Different currency exchange methods can save you up to 2,000 NT dollars in exchange fees. Today, from the user’s perspective, we analyze the four main channels for exchanging Yen to find the most suitable option for you.

Why is it worth exchanging for Yen?

When it comes to currency exchange, many people automatically think of Yen. This is not only due to travel popularity but also involves both daily life and investment aspects.

Travel shopping and daily use

Japan remains a cash society; most department stores in Tokyo, Osaka, and ski resorts in Hokkaido only accept cash (credit card penetration rate about 60%). Additionally, Yen is needed for purchasing via proxy services, agency services, studying abroad, and part-time work. Compared to other foreign currencies like the French Franc, which can also be exchanged, the frequency of use in daily Taiwanese life is much lower than Yen.

Hedging asset property

The Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a week, successfully resisting stock market declines. For Taiwanese investors, exchanging Yen is not just for leisure but also a strategic allocation to hedge against Taiwan stock market risks.

The Bank of Japan is about to raise interest rates, with Governor Ueda Kazuo recently expressing hawkish views, pushing market expectations for a rate hike to 80%, with a projected increase to 0.75% on December 19 (a 30-year high). This provides short-term support for the Yen.

Comparison of four Yen exchange channels

Many think exchanging Yen is just going to a bank, but the cost difference can reach 1,500-2,000 NT dollars. Below, we introduce these options ranked by cost-effectiveness.

Channel 1: Online currency exchange + airport withdrawal (most cost-effective)

Simple process: fill in currency, amount, branch, and date on the bank’s website, complete the transfer, then bring ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay with Taiwan Pay for only 10 NT), with about 0.5% better exchange rate.

The advantage is that Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours), allowing direct withdrawal before departure, saving the hassle of later currency exchange. For a 50,000 NT exchange, the estimated cost is about 300-800 NT, the lowest among the four methods.

Disadvantage: requires prior appointment (at least 1-3 days), and withdrawal time is limited by bank hours.

Suitable for: Travelers with strong planning and who prepare in advance for their trip.

Channel 2: Foreign currency ATM withdrawal (second best, most flexible)

Use a chip-enabled financial card to withdraw Yen cash from a bank’s foreign currency ATM, supporting 24-hour operation. Deducted from a NT dollar account with a cross-bank fee of only 5 NT, no currency exchange fee.

For example, with E.SUN Bank, the daily withdrawal limit is 150,000 NT dollars equivalent in Yen, with denominations of 1,000/5,000/10,000 Yen. Cost is about 800-1,200 NT.

The concern is limited ATM locations (about 200 nationwide), and cash may run out during peak times (like holidays or at airports). Planning ahead is recommended; don’t wait until the last minute.

Suitable for: Readers who don’t have time for in-person bank visits or need emergency cash.

Channel 3: Online exchange + in-person or ATM withdrawal

Use online banking or app to convert NT dollars into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, withdrawal at the counter or ATM incurs a spread fee (starting around 100 NT).

This method allows 24-hour operation, enabling batch purchases to average costs, suitable for observing favorable exchange rates (e.g., when NT to Yen drops below 4.80). Cost is about 500-1,000 NT.

However, you need to open a foreign currency account first; cash withdrawal incurs additional fees.

Suitable for: Investors experienced with foreign exchange and who frequently use foreign currency accounts.

Channel 4: In-person cash exchange (most traditional, highest cost)

Carry NT cash to a bank branch or airport counter to exchange for Yen cash. Although simple, it uses the “cash selling rate” (about 1-2% worse than the spot rate), plus some banks’ handling fees, making it the most expensive.

For example, Taiwan Bank’s cash selling rate is about 0.2060 NT/ Yen (i.e., 1 NT = 4.85 Yen). Exchanging 50,000 NT costs about 1,500-2,000 NT.

Suitable for: Those unfamiliar with online methods or needing small, urgent cash exchanges (e.g., at the airport).

Reference cash selling rates of various banks (as of December 10, 2025, for reference only)

Is it worthwhile to exchange Yen now?

Current exchange rate and trend

As of December 10, 2025, NT to Yen is about 4.85, compared to 4.46 at the start of the year, an appreciation of about 8.7%. For investors, the exchange gain from converting Yen is quite attractive. The second half of 2025 saw a 25% increase in Taiwan’s currency exchange demand, mainly driven by travel recovery and hedging needs.

Short-term volatility tips

USD/JPY dropped from a high of 160 at the start of the year to around 154.58, with short-term fluctuations possibly returning to 155, but medium to long-term forecasts are below 150. For investment purposes, Yen has hedging properties, but short-term risks include arbitrage unwinding, which could cause 2-5% volatility.

Exchange recommendation

Yes, it’s worthwhile to exchange Yen now, but consider doing it in batches. Avoid exchanging all at once; instead, buy small amounts periodically to diversify exchange rate risk and average costs. Especially under global rate cut expectations, the Yen may receive medium-term support.

Quick FAQs

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

Cash exchange rate is the rate banks offer for physical cash buy/sell, paid on the spot, but usually 1-2% worse than the spot rate. The spot rate is the foreign exchange market rate settled within T+2, more favorable (closer to international market prices), but requires waiting for settlement.

How much Yen can I get for 10,000 NT?

Using Taiwan Bank’s December 10, 2025, rate (cash selling 4.85), 10,000 NT can exchange for about 48,500 Yen. Using the spot rate (about 4.87), it’s roughly 48,700 Yen, a difference of about 200 Yen.

What is the daily limit for foreign currency ATM withdrawals?

After October 2025, banks have strengthened anti-fraud measures, with daily limits often around 100,000-150,000 NT equivalent in foreign currency. It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank fees (5 NT per transaction). During peak times, cash may run out quickly, so plan ahead.

Next steps after exchanging Yen

Once you have Yen, letting it sit idle earns no interest. You can consider the following allocations:

Yen fixed deposit: Most stable, with E.SUN, Taiwan Bank, etc., offering foreign currency accounts starting from 10,000 Yen, with annual interest rates around 1.5-1.8%.

Yen insurance policies: Medium-term holding, such as Cathay or Fubon savings insurance, with guaranteed interest rates of 2-3%.

Yen ETFs: Growth-oriented, like Yuanta 00675U tracking Yen index, available for fractional investing via broker apps.

Forex swing trading: Advanced option, trading Yen currency pairs (e.g., USD/JPY or EUR/JPY) to capture exchange rate fluctuations.

While Yen has strong hedging attributes, it still fluctuates both ways. The BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical risks could suppress Yen. For investment, Yen ETFs (annual management fee 0.4%) can diversify risk.

Summary: The winning formula for exchanging Yen

Yen is no longer just travel “pocket money”; it’s an asset with hedging and investment value. Follow the two principles of “batch exchange + don’t leave it idle after exchange” to minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport withdrawal” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or swing strategies based on needs. This way, you not only enjoy more cost-effective travel but also add a layer of protection during global market fluctuations.