Japanese Yen Exchange Guide: 4 Tips to Save Money When Traveling Abroad and Even Invest at the Same Time

The NT$ to JPY exchange rate has already reached 4.85. If you are planning to travel abroad or want to allocate foreign currency, now is the time to make a decision. From traditional in-branch currency exchange to 24-hour foreign currency ATMs, the cost differences can be as high as NT$1,500. Let’s analyze with the latest data which method of exchanging JPY is truly cost-effective.

Is it worth exchanging for JPY? Three perspectives to see clearly

The Japanese yen’s position in the international financial market far exceeds that of a typical travel currency. From daily expenses to asset allocation, its practical value deserves serious attention.

Travel and shopping aspect, most stores in Japan still primarily use cash (credit card penetration is only 60%), and places like Tokyo drugstores, Osaka shopping, and Hokkaido skiing all require cash in yen. Besides, Japan proxy shopping, online auction payments, studying abroad, and working holidays all involve yen.

Hedging asset property is the core value of the yen. Alongside the US dollar and Swiss franc, it is one of the world’s three major safe-haven currencies. Japan’s stable economy and manageable government debt make it attractive. When geopolitical tensions rise or stock markets fall, funds tend to flow into yen for safety—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while Taiwan stocks dropped 10%. Investors holding yen were protected implicitly.

Arbitrage trading mechanism makes the yen a “financing currency” for global investors. The Bank of Japan maintains ultra-low interest rates (only 0.5%), so investors borrow yen at low interest to buy higher-yielding USD investments (the USD/JPY interest rate differential reaches 4.0%), then close positions when risks increase, earning exchange rate and interest rate spreads.

Compared to the same period last year at 4.46, this year’s yen has appreciated by 8.7%, which already yields considerable exchange gains for Taiwanese currency exchangers.

NT$50,000 to JPY, four major cost comparisons of exchange channels

Many think that exchanging yen just involves going to the bank, but different channels’ spreads can cost you a few more drinks. Here are the latest four major currency exchange methods.

Method 1: In-branch cash exchange — the most traditional but most expensive

Bring NT$ to a bank or airport counter to exchange for yen cash, the simplest process. The problem is that banks use the “cash selling rate,” which is 1-2% worse than the spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 NT$/JPY (1 NT$ = 4.85 yen), and some banks charge additional handling fees.

Exchanging NT$50,000 in cash at the counter results in a loss of about NT$1,500-2,000, suitable for emergency needs or those unfamiliar with online operations.

Major bank yen cash rates (2025/12/10)

Method 2: Online currency exchange to deposit account — high flexibility but withdrawal fees apply

Use the bank app to convert NT$ to yen at the “spot selling rate” and deposit into a foreign currency account, saving on cash costs. If you want to withdraw cash, you can do so at a counter or via foreign currency ATM, incurring an additional NT$100-200 withdrawal fee.

This method suits investors who want to buy in stages when the NT$/JPY rate is below 4.80, averaging costs. Exchanging NT$50,000 costs about NT$500-1,000, half the cost of in-branch exchange.

Advantages include 24-hour self-operation, allowing you to observe exchange rate trends and buy in stages. The yen in the foreign currency account can also be transferred into fixed deposits earning interest (currently 1.5-1.8% annual rate).

Method 3: Online currency settlement + airport pickup — the most cost-effective travel solution

No need for a foreign currency account. Fill in the amount, pickup branch, and date on Taiwan Bank or Mega Bank’s official website. After remittance, pick up in person with ID and transaction notice, or book an appointment at the airport branch.

Taiwan Bank’s “Easy Purchase” online currency settlement fee is only NT$10 (via TaiwanPay), with about 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets, two of which operate 24/7, ideal for pre-travel planning.

Exchanging NT$50,000 costs only NT$300-800, making it the best choice for travelers. The only downside is needing to book 1-3 days in advance, with pickup times limited by business hours.

Method 4: Foreign currency ATM — 24/7 emergency cash

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash directly. Available 24/7, with only NT$5 interbank fee deducted from your NT$ account (free with your own bank card). Sufficient daily withdrawal limit at SinoPac’s foreign currency ATMs is NT$150,000, with no currency exchange fee.

The downside is that there are only about 200 such ATMs nationwide, with fixed denominations (1,000/5,000/10,000 yen). During peak times (like at airports), cash may run out. Exchanging NT$50,000 costs about NT$800-1,200.

Suitable for last-minute cash needs when out and about, without time to visit a bank.

Cost comparison table of four methods

Exchange rate trend judgment: Is now really a good time to exchange?

The NT$ to JPY rate at 4.85 is already relatively favorable. It was only 4.46 at the start of the year, appreciating 8.7% in just one year. Compared to the euro-to-Taiwan dollar rate around 1:36, the yen’s volatility and liquidity are even greater, making it more suitable for small-scale investors.

The Bank of Japan is on the verge of raising interest rates. Governor Ueda Kazuo recently made hawkish comments, boosting market expectations to 80%. A rate hike of 0.25 bps to 0.75% is expected at the December 19 meeting (a 30-year high), with Japanese government bond yields reaching a 17-year high of 1.93%. The 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 below 150.

The recommended strategy is to buy in stages and avoid all-in exchanges. While the yen has safe-haven attributes, risks of two-way fluctuations remain. Global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could temporarily push the rate down 2-5%. Using staged purchases can help spread the risk.

How to manage your money after exchanging for yen?

Don’t let your yen sit idle and gather dust. Based on your investment goals and risk tolerance, here are four common allocations.

Yen fixed deposit (conservative) is the simplest choice. E.SUN, Taiwan Bank, Mega Bank all offer online foreign currency accounts, with a minimum deposit of NT$10,000, and an annual interest rate of 1.5-1.8%. Fully passive. For NT$50,000 at 1.6%, you earn about NT$800 in interest annually.

Yen insurance policies (mid-term) are suitable for holding 3-5 years. Cathay, Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, combining protection and returns, but require signing contracts and have lower liquidity.

Yen ETFs (growth) like Yuanta 00675U, Capital 00703 track yen indices. You can buy fractional shares via broker apps for dollar-cost averaging, with an annual management fee of 0.4%. Suitable for those optimistic about the yen’s medium-long-term appreciation.

Yen forex trading (swing trading) involves directly trading USD/JPY or EUR/JPY through forex platforms to capture rate fluctuations. Advantages include two-way trading, 24-hour operation, and small capital requirements. Risks are higher, requiring technical analysis and discipline.

Quick answers to common questions

Q: What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical banknotes, convenient for immediate delivery but 1-2% worse than the spot rate. Spot rate is the foreign exchange market’s T+2 settlement rate, more favorable but takes two business days for transfer.

Q: How much yen can NT$10,000 buy?
Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. Using the spot rate of 4.87, about 48,700 yen.

Q: What do I need to bring for my first exchange?
ID + passport (for locals), or passport + residence permit (for foreigners). For online booking, also bring transaction notice. If over NT$100,000, may need to declare source of funds.

Q: What’s the daily withdrawal limit at foreign currency ATMs?
Post-2025 regulations, most banks set limits at NT$100,000-150,000 per day. Check your bank’s rules beforehand. To avoid cross-bank fees, consider using your own bank’s ATM or spreading withdrawals.

Summary

The yen is no longer just travel pocket money but a multi-functional asset with hedging and investment value. An 8.7% appreciation this year, its safe-haven status among three major currencies, and a 1.5-1.8% fixed deposit rate all signal opportunities right in front of you.

Whether for next year’s Japan trip or hedging against NT$ depreciation, mastering “staged exchange + not leaving the money idle” can minimize costs. Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or even small forex swings based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection amid global market turbulence.