Is Japanese Yen really worth it? The complete guide to NT$ to JPY exchange in 2025

In December 2025, the NT dollar to Japanese Yen exchange rate has reached 4.85, and this rate presents an opportunity for many. Whether you are planning to travel to Japan next year or have identified the yen’s hedging characteristics and want to try investing, the timing is indeed right. But the key question is: what is the most cost-effective way to exchange for yen? This article analyzes the four most common currency exchange channels in Taiwan to help you make the smartest choice before going abroad or investing.

Why is the Yen Worth Paying Attention To?

The用途 of the yen is much broader than you might imagine. Traveling in Japan, shopping for Japanese goods online, or studying abroad long-term all require yen. But from a deeper financial perspective, the yen is one of the three major safe-haven currencies globally (the other two are USD and Swiss Francs). This is the real reason why even investors are positioning in yen.

Japan’s economic fundamentals are stable, and its government debt structure is relatively healthy. Whenever global stock markets fluctuate or geopolitical risks rise, capital automatically flows into the yen for safety. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, successfully offsetting stock market declines. For Taiwanese investors, holding yen is not just for convenience when traveling but also a means of asset protection.

At the same time, the Bank of Japan’s policy stance is also worth noting. Currently, Japan maintains ultra-low interest rates, but expectations for rate hikes are heating up—BOJ Governor Ueda’s hawkish remarks indicate that the market has an 80% expectation of a rate increase in December, with a projected rise of 0.25 basis points to 0.75% (a 30-year high). Against the backdrop of the US entering a rate-cutting cycle, the yen’s relative attractiveness continues to rise.

Is Now a Good Time to Exchange for Yen? Timing Analysis

Since 2025, the NT dollar to yen has appreciated about 8.7% (from 4.46 at the start of the year to 4.85 now). This gain is quite significant for investors, especially under the continued pressure of NT dollar depreciation. In the second half of the year, Taiwan’s currency exchange demand surged by 25%, mainly driven by travel recovery and investors’ hedging needs.

But is now the “best time” to exchange for yen? The answer is: cost-effective, but should be done in installments.

The yen is currently in a volatile range. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest it will stay below 150. This means the yen still has room to appreciate but also carries volatility risks. For those investing, a lump-sum exchange is too risky; staggered entries are smarter. It is recommended to buy in installments when NT dollar/yen is below 4.80, averaging the cost.

Four Major Currency Exchange Methods in Taiwan — Practical Comparison

Many think that exchanging yen only requires a trip to the bank, but in reality, choosing different exchange channels can result in cost differences of thousands of NT dollars. Below, we analyze the pros and cons of each method.

First: Bank Counter Cash Exchange — Safest but Most Expensive

Go directly to a bank branch or airport counter with NT dollars to buy yen cash. This is the traditional method, simple and reliable, but the cost is using the “cash selling rate,” which is usually 1-2% worse than the spot rate.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT per yen (roughly 4.85 yen per NT dollar). Some banks add a fixed fee of NT$100-200, making the overall cost quite high. If you only need a small amount for emergency cash at the airport, this method is acceptable; but for large exchanges, the loss can be substantial.

Different major banks have slightly different cash selling rates and fees. E.SUN Bank and Taipei Fubon Bank have rates around 0.2067-0.2069, which are less favorable, while Taiwan Bank offers no handling fee at all. It’s best to compare before going.

Advantages: Safe, full denominations, in-person assistance, immediate cash receipt
Disadvantages: Higher exchange rate cost, limited by bank hours, possible handling fees, highest cost
Suitable for: Travelers needing small emergency cash, unfamiliar with online methods

Second: Online Bank Currency Exchange + ATM Cash Withdrawal — Flexible but Has Barriers

Use mobile or online banking apps to convert NT dollars into yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). When cash is needed, withdraw from foreign currency ATMs or bank counters, but there will be withdrawal fees (around NT$100+).

Advantages include better exchange rates, ability to buy in installments for average cost, and the flexibility to observe rate movements and buy at lows. Currently, ATM withdrawal fees range from NT$5-100, with in-bank cards costing only NT$5.

Disadvantages include needing to open a foreign currency account first, which may be cumbersome for beginners. Also, if you want to transfer into yen deposits later, additional steps are required.

Advantages: 24/7 operation, about 1% better rates, installment buying, cheap cross-bank ATM fees
Disadvantages: Need to open foreign currency account first, withdrawal fees, daily withdrawal limits (usually NT$100,000-150,000)
Suitable for: Experienced forex traders, planning long-term holdings, interested in yen deposits

Third: Online Reservation & Currency Exchange, Airport Pickup — Most Convenient and Cost-Effective

This method has surged in popularity recently. No need to open a foreign currency account; just fill in currency, amount, pick-up branch (preferably at the airport), and date on the bank’s website. After completing the online exchange, bring ID and transaction notice to the airport on departure day to pick up cash.

Taiwan Bank’s “Easy Purchase” online exchange is completely free (using Taiwan Pay costs only NT$10), with about 0.5% better rates, making it one of the lowest-cost options. Mega Bank offers similar service. Taoyuan Airport has 14 Taiwan Bank branches, with 2 open 24 hours, very convenient.

The only limitation is the need to book 1-3 days in advance; branch pick-up cannot be changed on short notice. For well-planned travelers, this is almost perfect.

Advantages: 0.5% better rates, often no handling fee, airport branch pick-up, low cost
Disadvantages: Need prior booking, pick-up limited to bank hours, branch cannot be changed
Suitable for: Travelers with time to plan, wanting to pick up cash at the airport

Fourth: Foreign Currency ATM — Fastest but Most Limited

Use a chip-enabled bank card to withdraw yen cash directly from foreign currency ATMs 24/7. If using your own bank card, cross-bank fee is NT$5; deducts directly from NT dollar account, no need to open a foreign currency account. E.SUN Bank’s foreign currency ATM limit is NT$150,000 per day, with no exchange fee, quite flexible.

However, there are about 200 such ATMs nationwide in Taiwan, mostly in urban areas, with limited currencies (mainly mainstream ones). During peak times (like airports), cash may run out. It’s advised not to wait until the last minute.

Note that Japan’s ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus) to operate.

Advantages: Instant withdrawal, high flexibility, NT$5 cross-bank fee, no exchange fee
Disadvantages: Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash shortages at peak times
Suitable for: Users who can’t visit banks, need urgent cash

Cost Comparison of Four Methods (Based on 50,000 NT exchange)

Conclusion: If you have time to plan ahead, online exchange + airport pickup offers the lowest cost and best experience. For last-minute needs, foreign currency ATMs are a fallback. Avoid cash exchange at banks unless necessary.

Investment Options After Exchanging Yen — Don’t Let Your Money Idle

Once you have yen, if you don’t want it to sit idle without interest, several prudent investment options are worth considering.

Yen Fixed Deposits are the safest. E.SUN Bank and Taiwan Bank now offer online foreign currency accounts for fixed deposits, starting from NT$10,000. Current annual interest rates are around 1.5-1.8%. While not high, considering yen’s hedging features and potential appreciation, the overall return is quite attractive. It’s simple to operate and suitable for risk-averse investors.

For slightly higher yields, yen savings insurance policies are also an option. Cathay and Fubon Life offer yen-denominated savings plans, with guaranteed rates around 2-3%. Holding for 5-10 years can lock in stable returns.

For more growth, yen ETFs (like Yuanta 00675U, 0070) tracking yen indices can be bought in broker apps, suitable for dollar-cost averaging. These are suitable for investors comfortable with short-term fluctuations.

The most aggressive approach is trading USD/JPY or EUR/JPY directly on forex platforms for intraday or swing trading. Benefits include two-way trading, 24-hour market, and small capital requirements, but risks are higher—unsuitable for beginners.

Quick FAQs

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

Cash rate is the rate banks offer for physical cash transactions, convenient for immediate use but usually 1-2% worse than market prices. Spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers and interbank settlements, closer to international market prices but requires waiting. In short, spot rate is more favorable but you can’t get cash instantly; cash rate allows immediate cash but at a cost.

Q: How much yen can I get for NT$10,000 now?

Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 can buy about 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen, a difference of roughly 200 yen (about NT$40).

Q: What ID do I need for cash exchange at the bank?

Generally, you need your ID card and passport. Foreigners should bring passport and residence permit. For corporate exchanges, business registration documents are required. Minors under 20 need a parent’s consent. Large exchanges over NT$100,000 may require source of funds declaration.

Q: Are there withdrawal limits for foreign currency ATMs?

Yes. After the 2025 regulation, many banks have adjusted limits. For example, CTBC Bank’s daily and single transaction limit is NT$120,000; Taishin Bank’s is NT$150,000; E.SUN’s limit is NT$50,000 per transaction (50 banknotes) and NT$150,000 per day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Yen Is No Longer Just Pocket Money

Yen is no longer just for travel expenses; it now functions as a hedging asset and investment vehicle. The 2025 exchange environment is quite favorable for Taiwanese investors—NT dollar depreciation, yen appreciation, and BOJ rate hike expectations all point to yen’s attractiveness.

Whether you plan to visit Japan next year or want to position for hedging, just follow the two principles of “staggered exchange + don’t leave the money idle” to minimize costs and maximize returns.

For beginners, starting with “Taiwan Bank online exchange + airport pickup” is simple, cost-effective, and convenient. After acquiring yen, you can diversify into yen deposits, ETFs, or even try forex swing trading based on your risk appetite. This way, you not only enjoy more cost-effective travel but also add a layer of asset protection amid global market volatility. Yen deposits and ETFs are mature options—don’t let your hard-earned yen go to waste.