Is now the right time to invest in Japanese Yen? A complete analysis of the 4 major exchange options

The NT$ to JPY exchange rate has recently risen to 4.85, attracting many people to pay attention to JPY-related operations. Whether for traveling abroad or asset allocation, the Japanese yen is worth serious consideration. This article will delve into exchange strategies and explore why now is a good time to allocate JPY under the pressure of NT$ depreciation.

Why has the JPY become a mainstream choice?

In Taiwan’s foreign exchange market, the popularity of JPY remains high, far beyond just travel needs.

Everyday consumption: travel, purchasing agents, studying abroad

When shopping in Tokyo, Osaka, or skiing in Hokkaido, many merchants still prefer cash transactions (credit card penetration is only about 60%), making cash demand relatively stable. At the same time, Japan’s online shopping and purchasing agent markets are large, and paying directly in JPY is often more convenient. Students planning long-term stays in Japan and working holidaymakers also often prepare JPY in advance to avoid sudden exchange rate fluctuations.

Financial attributes: three pillars of safe-haven assets

As one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc), JPY holds a unique market position. Japan’s economic fundamentals are stable, and debt is manageable. Whenever global markets are turbulent (such as the Russia-Ukraine conflict in 2022), funds flow into JPY as a safe haven—at that time, the JPY appreciated by 8% in a single week, effectively buffering stock market declines of 10%. For Taiwanese investors, holding JPY is not only for enjoyment but also a practical tool to hedge against Taiwan stock market volatility.

Arbitrage trading driver

Japan has maintained an ultra-low interest rate policy (currently only 0.5%), making JPY a “financing currency.” Many institutions borrow low-interest JPY to convert into higher-yield USD investments, with the current USD-JPY interest rate differential about 4.0%. When risks increase, these positions are quickly unwound, which may cause short-term pressure on the JPY exchange rate.

Is now a good time to exchange for JPY?

Exchange rate trend analysis

As of December 10, 2025, NT$ to JPY is about 4.85, compared to 4.46 at the beginning of the year, an appreciation of 8.7% for the year. Under the ongoing pressure of NT$ depreciation, this gain is quite significant. Market data shows that in the second half of the year, Taiwan’s foreign exchange demand increased by 25% annually, mainly driven by travel recovery and asset hedging needs.

Short- to medium-term outlook

The US has started a rate-cutting cycle, which supports the JPY. Meanwhile, the Bank of Japan (BOJ) is on the verge of raising interest rates—recent hawkish comments by Governor Ueda Kazuo pushed market expectations for a rate hike to 80%, with a scheduled meeting on December 19 to raise rates by 0.25 basis points to 0.75% (a 30-year high). Japanese government bond yields have broken through 1.93%, a 17-year high.

The USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, possibly testing the 155 level in the short term, but in the medium to long term, it is forecasted to fall below 150.

Operational principles recommended

Exchanging for JPY now is indeed cost-effective, but remember to buy in batches. Although JPY has safe-haven attributes, short-term risks include arbitrage unwinding causing 2-5% volatility. It is advisable to observe lows (when NT$ to JPY is below 4.80) and gradually build positions, avoiding a one-time full exchange.

Four channels for exchanging JPY

Option 1: Traditional cash exchange

Carry NT$ cash directly to a bank branch or airport counter for cash exchange. This method is simple but the most costly—banks use the “cash selling rate,” usually 1-2% worse than the spot rate. Some banks also charge fixed handling fees, increasing the actual cost.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/JPY (equivalent to 1 NT$ = 4.85 JPY).

Suitable for: travelers unfamiliar with online operations or needing small, urgent exchanges at the airport.

Estimated cost (for NT$50,000): loss of NT$1,500-2,000

Option 2: Online exchange + in-person or ATM withdrawal

Use bank app or online banking to convert NT$ into JPY digital assets, enjoying a more favorable “spot sell rate” (about 1% better than cash exchange rate). If physical cash is needed later, you can withdraw at a branch or use foreign currency ATMs, but additional fees apply (starting at NT$100).

Many institutions like E.SUN Bank support this service. Customers can monitor exchange rates and buy in batches. After exchange, the foreign currency account can also be transferred into fixed deposits (annual interest rate about 1.5-1.8%).

Suitable for: experienced forex traders, those wanting to average costs over multiple purchases, or considering JPY fixed deposits.

Estimated cost (for NT$50,000): loss NT$500-1,000

Option 3: Online currency exchange reservation + airport pickup

No need to open a foreign currency account. Fill in exchange details (currency, amount, pickup branch, date) on the bank’s official website. After remittance, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with reservations for airport branches.

Taiwan Bank’s online exchange is fee-free (NT$10 for Taiwan Pay payment), with about 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank service points, 2 of which operate 24 hours.

Suitable for: planned trips, clear travel dates, and travelers wanting to pick up cash at the airport.

Estimated cost (for NT$50,000): loss NT$300-800

Option 4: Foreign currency ATM withdrawal 24/7

Use chip-enabled debit/credit cards at foreign currency ATMs to withdraw JPY cash, available 24 hours. Withdraw directly from NT$ account, with cross-bank fee of NT$5 and no additional exchange fee.

SinoPac Bank’s foreign currency ATM limit is equivalent to NT$150,000 per day, with about 200 locations nationwide. Denominations are fixed at 1,000/5,000/10,000 JPY.

Suitable for: urgent needs, no time for in-person visits, or small cash requirements.

Estimated cost (for NT$50,000): loss NT$800-1,200

Comparison table of the four exchange methods

Quick reference of bank cash selling rates (updated 2025/12/10)

Post-exchange asset allocation

After exchanging for JPY, it is recommended not to let the funds idle without interest. Based on risk preference, consider the following allocations:

Conservative: JPY fixed deposit
Open a foreign currency account at E.SUN or Taiwan Bank, with a minimum of 10,000 JPY, offering about 1.5-1.8% annual interest. Suitable for stable investors.

Mid-term: JPY insurance policy
Purchase USD or JPY savings insurance via Cathay or Fubon Life, with guaranteed interest rates of 2-3%, combining protection and returns.

Growth: JPY ETFs
Products like Yuanta 00675U or Capital 00703 track JPY indices, available via brokerage apps for fractional purchase, suitable for regular investing.

Volatility: Forex trading
Trade USD/JPY or EUR/JPY directly on platforms like Mitrade, supporting zero commission, low spreads, 24-hour trading, ideal for short-term traders.

FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) applies to physical cash transactions, with the advantage of immediate delivery but 1-2% worse than market rates. Spot rate (Spot Rate) applies to electronic transfers, settled in T+2, with more favorable rates close to international levels.

Q. How much JPY can I get with NT$10,000?
Calculation: JPY amount = NT$ amount × current rate. Using Taiwan Bank’s December 10 cash selling rate of 4.85, NT$10,000 ≈ 48,500 JPY. Using spot rate 4.87, ≈ 48,700 JPY, about 200 JPY difference.

Q. What documents are needed for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. If pre-booked online, also need transaction notice. Under 20 years old require parental consent and signature; large exchanges over NT$100,000 may require source of funds declaration.

Q. Is there a limit for foreign currency ATM withdrawals?
Different banks have different limits (since October 2025, many have strengthened anti-fraud measures). For example, CTBC’s limit per card is NT$120,000 equivalent; E.SUN’s is NT$50,000 per transaction and NT$150,000 per day; others depend on issuing bank. It is recommended to split withdrawals or use your own bank card to reduce cross-bank fees.

Conclusion

The JPY is no longer just travel “pocket money” but also an asset with hedging and investment value. Facing structural pressure of NT$ depreciation, using batch exchanges, choosing optimal channels, and optimizing subsequent allocations can reduce costs and increase returns. Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then, based on needs, move into fixed deposits, ETFs, or forex trading, creating a comprehensive JPY portfolio. This way, you can enjoy more cost-effective travel and gain an extra layer of protection amid global market changes.