Japanese Yen Exchange Guide: Best Currency Exchange Strategies During New Taiwan Dollar Appreciation Period

Why Is Now a Good Time to Watch the Yen? Opportunities Amid the NT Dollar Appreciation

By December 2025, the NT dollar to Japanese yen exchange rate has broken through the 4.85 level, representing an 8.7% increase from the 4.46 at the beginning of the year. What does this mean? For you holding NT dollars, the appreciation of the NT dollar is clearly beneficial — you can now exchange fewer NT dollars for the same amount of yen. From another perspective, this is the best time to position in yen.

The value of the yen is not only relevant for travel expenses. From an investment standpoint, the yen is one of the three major safe-haven currencies globally, alongside the US dollar and Swiss franc. When global markets are turbulent and geopolitical risks rise (such as the 8% weekly increase during the Russia-Ukraine conflict in 2022), capital flows into yen seeking refuge. For Taiwanese investors, this represents another tool to hedge against fluctuations in the Taiwan stock market.

According to the latest data, Taiwan’s foreign exchange demand has grown by 25% in the second half of the year, driven by a dual force of travel recovery and risk hedging. Whether you’re preparing for trips to Tokyo or Osaka next year, or looking to shift into foreign currencies under the pressure of NT dollar depreciation, now is a critical moment.

Bank of Japan Rate Hike Sparks Currency Movement: Exchange Rate Trend Analysis

Bank of Japan Governor Ueda Kazuo recently made hawkish comments, with market expectations that the upcoming meeting on the 19th of this month will raise interest rates by 0.25 bps to 0.75%, hitting a 30-year high. Simultaneously, the yield on Japan’s 10-year government bonds has surged to 1.93%, a 17-year high.

The USD/JPY exchange rate has retreated from the high of 160 at the start of the year to around 154.58. In the short term, it may be stimulated by news to test the 155 level, but the medium- to long-term trend points below 150. In other words, now is a good time to buy yen not only to benefit from NT dollar appreciation but also to take advantage of the yen’s long-term upward potential.

Four Exchange Paths: How to Choose the Most Cost-Effective?

Many think exchanging yen involves just a bank visit, but in reality, the difference in exchange rates can cost you thousands of NT dollars. For example, exchanging NT$50,000 via different channels can vary by over NT$1,000 in costs. Let’s break down each method.

First: Traditional Counter Exchange — Most Secure but Most Expensive

Bring cash NT dollars directly to a bank branch or airport counter, pay cash, and receive yen in cash. Simple and transparent, but using the “cash selling rate” (about 1-2% worse than the spot rate), the overall cost is higher.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 NT$/yen, meaning NT$10,000 can be exchanged for about 48,500 yen. Some banks also charge an additional NT$100-200 handling fee. For NT$50,000, the loss is approximately NT$1,500-2,000.

This method suits travelers unfamiliar with online operations, needing small amounts for urgent use (like at the airport), or those with a strong demand for cash. Advantages include full denomination options (1,000, 5,000, 10,000 yen) and on-site assistance from staff; disadvantages are limited operating hours (weekday 9:00-15:30) and less favorable rates.

Second: Online Currency Exchange + ATM Withdrawal — Balance Flexibility and Cost

Using bank apps or online banking, convert NT dollars to yen at the “spot selling rate” (about 1% better than cash rate) and deposit into a foreign currency account. If cash is needed, withdraw from foreign currency ATMs or counters, incurring additional fees (around NT$100+).

For example, E.SUN Bank’s foreign currency ATM allows NT$15,000,000 withdrawal per day with no exchange fee, and only NT$5 cross-bank fee. This method suits those monitoring exchange rates, entering gradually when the NT dollar/yen rate is below 4.80, averaging costs over time.

Losses are about NT$500-1,000, ideal for investors experienced in forex and with foreign currency accounts. After withdrawal, you can also transfer funds into yen fixed deposits (current annual interest 1.5-1.8%) to increase returns.

Third: Online Currency Conversion + Airport Pickup — Best Choice Before Traveling

No need to open a foreign currency account in advance. Simply fill in currency, amount, pickup branch, and date on the bank’s website. Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (pay NT$10 via Taiwan Pay), with about 0.5% favorable rate margin. After remittance, bring ID and transaction notice to pick up in person.

Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, allowing reservation for airport branch pickup. It’s very convenient to withdraw before departure. Losses are about NT$300-800, making it ideal for planned travelers who want to pick up cash at the airport. The downside is the need for prior reservation (at least 1-3 days).

Fourth: Foreign Currency ATM — Anytime, Anywhere, 24/7 Unlimited

Use a chip-enabled bank card to withdraw yen cash from foreign currency ATMs, available 24/7 and supporting interbank transactions (NT$5 cross-bank fee per withdrawal). No exchange fee, instant and flexible.

However, the number of foreign currency ATMs is limited (about 200 nationwide), and currency options and denominations are restricted (fixed at 1,000/5,000/10,000 yen). During peak times (like at airports), cash may run out. Losses are about NT$800-1,200. Suitable for those with no time to visit banks or urgent needs, but avoid last-minute withdrawals.

A Clear Table: Actual Cost Comparison of Four Methods

Quick Tips for Beginners: Cash Rate vs Spot Rate

“Cash rate” is the bank’s buy/sell rate for physical bills and coins. It’s convenient for immediate cash transactions but usually 1-2% worse than the spot rate, with additional handling fees.

“Spot rate” is the foreign exchange market rate for settlement within two business days, mainly used for electronic transfers and non-cash transactions. It’s closer to international market prices and more competitive.

Example: Exchanging NT$10,000 at Taiwan Bank’s cash selling rate (0.2060) yields about 48,500 yen, while at the spot rate (0.2062), you get approximately 48,620 yen — a difference of about 120 yen (equivalent to NT$24).

After Buying Yen, Don’t Let Your Money Sit Idle

Once you hold yen, opportunities extend beyond travel expenses. Based on current market conditions, yen assets include:

Yen Fixed Deposit: The most stable. Open an FX account at E.SUN or Taiwan Bank online, deposit starting from 10,000 yen, with an annual interest rate of 1.5-1.8%. Suitable for low-risk investors.

Yen Insurance Policies: Medium-term allocation. Cathay and Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, combining protection and returns.

Yen ETFs: Growth-oriented. Yuanta 00675U tracks the yen index, and fractional shares can be bought via broker apps, suitable for small-scale accumulation.

Yen Forex Trading: Swing trading. Directly trade USD/JPY or EUR/JPY, leveraging 24-hour markets, long/short positions, and low margin to capture exchange rate fluctuations. Suitable for experienced traders.

While the yen is a strong hedge, it still experiences two-way volatility. BOJ rate hikes are positive for the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may suppress it. Consider diversifying with yen ETFs (annual management fee 0.4%) or combining with fixed deposits for layered asset allocation.

Common FAQs

Q: How much yen can I get with NT$10,000?
Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. Using the spot rate of 4.87, about 48,620 yen — a difference of roughly 120 yen (NT$24).

Q: What documents are needed for counter exchange?
Taiwanese: ID + passport; foreigners: passport + residence permit; companies: business registration. For online reservations, a transaction notice is also required. Under 20 needs parental accompaniment; large exchanges over NT$100,000 may require source of funds declaration.

Q: Is there a limit for foreign currency ATM withdrawals?
Post-October 2025, banks have new limits: CTBC NT$120,000/day, Taishin NT$150,000/day, E.SUN NT$150,000/day (including card transactions). It’s recommended to use your own bank card to avoid NT$5 cross-bank fee per withdrawal or to split withdrawals.

Summary: Use Batch Currency Exchange + Follow-up Asset Allocation

Yen is no longer just for travel “pocket money,” but also a hedging and investment asset. The appreciation of NT dollar makes positioning in yen cheaper and more promising.

Whether preparing for next year’s trip or shifting into foreign assets amid NT dollar depreciation, the key is “batch exchange + strategic allocation after exchange” to minimize costs and maximize returns.

Beginners are advised to start with the simplest options like “Taiwan Bank online currency exchange + airport pickup” or “foreign currency ATM,” then adjust into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy cost-effective travel and add an extra layer of asset protection during global market turbulence.