The Japanese Yen investment craze is heating up: The true cost of exchanging 50,000 TWD revealed

The NT dollar to Japanese Yen exchange rate has now reached 4.85, up nearly 9% from 4.46 at the beginning of the year. Many people are starting to seriously consider allocating in Japanese Yen. While exchanging for Yen seems simple, in reality, there are four channels—bank counter, online remittance, foreign currency ATMs, and others—that can have exchange rate differences of over 1,000 NT dollars. We will explain the latest currency exchange methods clearly so you can truly get the most value when exchanging your NT dollars.

Is it worth buying Yen now? Market signals tell you

By the end of 2025, the Japanese Yen is at a critical moment of “dual positive factors.” The Bank of Japan Governor Ueda Kazuo has recently made hawkish remarks, with market expectations of interest rate hikes reaching 80%, and a projected increase to 0.75% on December 19 (a 30-year high), with Japanese government bond yields hitting a 17-year high of 1.93%. Meanwhile, USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with short-term fluctuations possibly testing 155, but medium to long-term forecasts suggest it will stay below 150.

For investors, the Yen is not just pocket money for travel, but one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s stable economy and low debt characteristics cause funds to flow into Yen during market turbulence—during the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a week, effectively buffering a 10% decline in the stock market. For Taiwanese investors, exchanging for Yen is not just for leisure but also a hedge against Taiwan stock market volatility.

According to data, Taiwan’s foreign exchange demand increased by 25% in the second half of the year, mainly driven by tourism recovery and hedging needs. However, while the BOJ’s rate hikes support the Yen, global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could also depress the exchange rate. It is recommended to enter gradually to avoid exchanging all at once.

Cost comparison of four major currency exchange channels: How to exchange 50,000 NT dollars most cheaply?

Many think exchanging Yen is just a matter of going to the bank, but actual rates, fees, and service convenience vary greatly. Using real rates from December 10, 2025, we will show you which method is most cost-effective at a glance.

Option 1: In-person cash exchange (most traditional but most expensive)

Bring NT cash directly to a bank branch or airport counter to exchange for Yen cash. This is the safest method, but using the “cash selling rate” results in a 1-2% difference from the spot rate, making it the most costly.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT per Yen (roughly 4.85 Yen per NT dollar). 50,000 NT dollars can be exchanged for about 242,700 Yen, with a loss of roughly 1,500-2,000 NT dollars.

Advantages: Safe, full denominations, staff assistance available
Disadvantages: Worst exchange rate, limited hours (9:00-15:30), additional handling fees increase cost
Suitable for: Those unfamiliar with online operations or needing small, urgent exchanges

Option 2: Online currency exchange + in-person withdrawal (balanced choice)

Use bank app or online banking 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). If cash is needed, withdraw in person or via foreign currency ATM, but additional fees apply (from about NT$100).

E.SUN Bank app exchange and withdrawal fee is the difference between spot and cash rates, with a minimum of NT$100. Exchanging 50,000 NT dollars this way results in a loss of about NT$500-1,000.

This method is best for observing rate trends and entering gradually at low points (e.g., when NT dollar/ Yen is below 4.80) to average costs.

Advantages: 24-hour operation, allows averaging costs through multiple entries, better rates
Disadvantages: Need to open a foreign currency account first, withdrawal incurs extra fees
Suitable for: Readers experienced with foreign exchange and using foreign currency accounts regularly

Option 3: Online currency exchange + airport pickup (most cost-effective travel method)

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After completion, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega International Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (only NT$10 if paid via Taiwan Pay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours). Exchanging 50,000 NT dollars results in only NT$300-800 loss.

This is the best pre-departure reservation method, especially suitable for planned travelers.

Advantages: Better rates, often no handling fee, can specify airport pickup
Disadvantages: Need to book in advance (1-3 days), pickup limited to bank hours
Suitable for: Well-planned travelers wanting to pick up cash at the airport

Option 4: Foreign currency ATM withdrawal (most convenient for urgent needs)

Use a chips financial card at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation and interbank transactions (only NT$5 fee for cross-bank deduction). E.SUN Bank foreign currency ATMs allow withdrawal from NT dollar accounts, with a daily limit of NT$150,000 and no currency exchange fee. With NT$50,000, loss is about NT$800-1,200.

Note that locations are limited (about 200 nationwide), and only fixed denominations of 1,000/5,000/10,000 Yen are available. During peak times (like at airports), cash may run out.

Advantages: Instant withdrawal, high flexibility, low fees from NT dollar accounts
Disadvantages: Limited locations and denominations, cash shortages at peak times
Suitable for: Those with no time to visit banks or needing urgent cash

Cost comparison of four methods

How to use Yen after exchange? Investment allocation without躺平

Once you get Yen, don’t let the money sit idle. You can shift to stable income or growth investments based on your risk preference.

Yen fixed deposit: The safest option. Open an FX account with E.SUN or Taiwan Bank online, deposit starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. Suitable for conservative investors.

Yen insurance policies: Medium-term holding. Cathay or Fubon offer savings insurance with guaranteed 2-3% interest, which works better when interest rates rise.

Yen ETFs: Growth-oriented. Yuanta 00675U tracks Yen index, can be bought as fractional shares via broker apps, with 0.4% annual management fee, suitable for medium-term bullish Yen outlook.

Forex trading: Swing or intraday strategies. Trade USD/JPY or EUR/JPY directly on forex platforms, with low spreads and zero commissions, 24-hour trading, suitable for those with professional knowledge and risk management skills.

While Yen has safe-haven attributes, it also has two-way volatility risks, especially during global arbitrage unwinding. Investors should choose based on their needs—long-term hedging with deposits or ETFs, or short-term trading for quick gains.

Common questions about currency exchange

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

Cash rate (Cash Rate) is the rate banks use for physical cash buying and selling, convenient for carrying cash but usually 1-2% worse than the spot rate. Spot rate (Spot Rate) is the rate in the forex market for settlement within two business days, mainly used for electronic transfers, closer to international market prices and more favorable.

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

Using Taiwan Bank’s December 10, 2025, rate as an example, the cash selling rate is about 4.85 (1 NT dollar = 4.85 Yen). 10,000 NT dollars can buy about 48,500 Yen. Using the spot selling rate of about 4.87, it’s roughly 48,700 Yen, a difference of about 200 Yen (roughly NT$40).

Q. What ID do I need for in-person exchange?

Taiwanese need to bring ID card + passport; foreigners need passport + residence permit. If pre-booked online, also bring transaction notice. Minors under 20 need parental consent and ID; large exchanges over NT$100,000 may require source of funds declaration.

Q. Is there a limit for foreign currency ATM withdrawal?

Post-2025, limits vary by bank: CTBC Bank equivalent NT$120,000/day, Taishin Bank NT$150,000/day, E.SUN Bank NT$150,000/day (including debit). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Conclusion: The core tips for smart Yen exchange

The Yen is no longer just pocket money for travel but an asset with hedging and investment value. Whether preparing for a trip to Japan next year or capitalizing on NT dollar depreciation by hedging in Yen, following the principles of “gradual exchange + not躺平 after exchanging” can minimize costs and maximize gains.

Beginners should start with the simplest options like “Taiwan Bank online remittance + airport pickup” or “foreign currency ATM,” then transfer Yen into fixed deposits, ETFs, or even try forex trading based on needs. Although USD exchange rates fluctuate, Yen tends to be more stable. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.