NT$50,000 exchanged for JPY results in a loss of 1,500 yen? Revealing the four major currency exchange channels through actual testing

The NT$ to JPY exchange rate today reached 4.85. Before going abroad, you might want to exchange your money into yen, but do you know? Exchanging 50,000 NT$ through the wrong channel could cost you an extra 1,500 NT$. We tested the four most common methods in Taiwan to help you instantly understand which is the most cost-effective.

4 Ways to Exchange Yen, Cost Differences Up to 3 Times?

Many people think they just need to queue at the bank to exchange yen, but they don’t realize that the exchange rate difference alone can eat up several cups of bubble tea. Let’s look at the real costs of each method:

1. Bank Counter Cash Exchange — The Most Traditional but Most Expensive Choice

Bringing NT$ cash directly to the bank counter to exchange for yen sounds simple, but it’s actually the biggest loss. Banks sell foreign currency at the “cash selling rate” (1-2% worse than the spot rate), plus some banks charge handling fees. Exchanging 50,000 NT$ can end up losing 1,500-2,000 NT$.

For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/JPY (at an exchange rate of 4.85 JPY/NT$), while the spot rate is around 4.87. This difference already costs you. E.SUN and Cathay United Bank’s cash rates are even around 0.2067-0.2069, with an additional 100-200 NT$ handling fee per transaction.

Only for small emergencies (like sudden airport needs) or older people unfamiliar with online operations is this method recommended.

2. Online Currency Exchange + In-Branch Cash Pickup — A Smarter Middle Ground

Use the bank app to exchange currency 24/7 from home, deposit into a foreign currency account, then go to the branch or foreign currency ATM to withdraw cash at a chosen time. The exchange rate is “spot sell” (about 1% better than cash), reducing costs to 500-1,000 NT$, saving quite a bit.

The downside is you need to open a foreign currency account first, and when withdrawing cash, you’ll pay about 100 NT$ handling fee. But if you already have a foreign currency account or plan to hold yen long-term, this method is quite cost-effective.

3. Online Currency Purchase — The Best Choice for Savvy People

Taiwan Bank’s “Easy Purchase” service allows you to book directly on their website, select amount, branch, and date, then bring your ID and notification slip to pick up. The exchange rate is 0.5% better, and handling fee is waived (just 10 NT$ via TaiwanPay). Exchanging 50,000 NT$ costs about 300-800 NT$ less.

The best part is you can reserve at 14 locations at Taoyuan Airport, including 2 open 24 hours, so you can pick up your yen directly at the airport before departure—no need to visit the bank. Mega International Bank offers similar services. These are the top options before traveling abroad.

4. Foreign Currency ATMs — A Lifesaver for Urgent Needs

Want to exchange yen at midnight? Use a chip-enabled debit card at a foreign currency ATM, which operates 24/7, with a single transaction fee of only 5 NT$. However, cash denominations are fixed (1000, 5000, 10000 yen), and there are only about 200 ATMs nationwide. During peak times (like at airports), cash may run out.

Cost ranges from 800-1,200 NT$, suitable for those who have no time for in-branch visits and haven’t planned ahead. E.SUN’s foreign currency ATMs allow withdrawal directly from NT$ accounts, with a daily limit of 150,000 NT$, offering good flexibility.

Is It Really Time to Exchange Yen Now?

In 2025, the NT$ faces significant depreciation pressure. The yen has appreciated 8.7% since the start of the year (from 4.46 to 4.85). But this isn’t a perfect timing to buy all at once; consider dollar-cost averaging.

Exchange Rate Trends

The US has entered a rate-cut cycle, supporting the yen. Meanwhile, the Bank of Japan Governor Ueda Kazuo’s hawkish comments are everywhere. Market expects a 0.25 basis point rate hike on December 19 to 0.75% (a 30-year high), with Japanese bond yields hitting a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now. Short-term, it may rebound to 155, but medium to long-term forecasts suggest below 150.

Investment Perspective

The yen is one of the three major safe-haven currencies (along with USD and CHF). When global risks rise, capital flows into it. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering stock market declines for arbitrage traders. For Taiwanese investors, exchanging some yen can hedge against Taiwan stock market volatility, especially when cross-strait risks remain.

In the short term, watch out for risks of position unwinding, with exchange rates fluctuating 2-5%. It’s advisable to buy in batches rather than all at once.

After Exchanging Yen, 4 Investment Options Compared

Holding yen without interest is a waste. The following four options are suitable for small-scale beginners:

Yen Fixed Deposit — The Most Stable and Simple

E.SUN and Taiwan Bank offer foreign currency accounts, allowing online transfers. Minimum 10,000 yen, with annual interest rates of 1.5-1.8%. Holding 50,000 yen for a year yields about 750-900 yen in interest—small but stable.

Yen Savings Insurance — Medium-term Protection

Cathay Life and Fubon Life offer foreign currency savings insurance with guaranteed interest rates of 2-3%. Suitable for idle funds for 3-5 years. Slightly riskier than fixed deposits but offers higher interest.

Yen ETFs — For Those Wanting to Catch Waves

Yuan Tai’s 00675U tracks the yen index. You can buy fractional shares via brokerage apps, suitable for regular investment. Management fee is 0.4% annually, much simpler than trading forex yourself.

Forex Swing Trading — Advanced Option for Speculators

Trade USD/JPY or EUR/JPY directly on forex platforms, with both long and short positions, 24/7. Requires risk awareness; not recommended for beginners.

Quick FAQs

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

Cash exchange rate is the rate banks offer for physical cash, available immediately, but with a 1-2% difference and higher fees. Spot rate is the forex market rate settled T+2, used for electronic transfers, close to international market prices, much cheaper. In short: use cash rate for physical cash (more expensive); use spot rate for transfers (cheaper).

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

Using the formula: Yen amount = NT$ amount × current rate. At 4.85, 10,000 NT$ = 48,500 yen. At spot rate 4.87, it’s 48,700 yen. Difference is only about 200 yen (NT$40).

Q: What do I need to bring for in-branch exchange?

ID card + passport; foreigners bring passport + residence permit. For online booking, also bring transaction notification slip. Large amounts over NT$100,000 may require source of funds declaration.

Q: What’s the daily limit for foreign currency ATMs in 2025?

Most banks have adjusted limits to 100,000-150,000 NT$ per day. CTBC’s own card allows 120,000 NT$, Taishin 150,000 NT$, E.SUN has 50,000 (cash withdrawal) and 150,000 (including debit). Using other banks’ cards incurs higher fees for amounts over NT$20,000 per transaction. During peak times, it’s best to withdraw in parts to avoid cash shortages at airports.

Final Advice

Yen is no longer just “pocket money for travel,” but an asset for hedging. With NT$ depreciation and global uncertainties in 2025, a moderate yen allocation is smart.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually move to fixed deposits, ETFs, or even swing trading. The key is to buy in batches, not all at once, to seize low points and reduce short-term exchange rate risks. This makes your trips more cost-effective and adds a layer of protection during global storms.