Is it worth exchanging Japanese Yen now? TWD to JPY is 4.85. An in-depth analysis of the 4 smartest currency exchange methods

December 2025, the NT dollar to Japanese Yen has surged to 4.85, and clearly more people are exchanging yen. It’s not just travelers riding the trend; even the investment circle is quietly positioning in yen. Is it now a good time to buy? We’ve broken down the latest exchange channels, fee differences, and even how much NT dollars you need to spend for 100,000 yen.

Why did the yen suddenly become hot?

When it comes to currency exchange, most people think of the Japanese Yen. This is not only because of the love for Japan but also due to more critical financial reasons.

Travel and Practical Use in Daily Life Tokyo, Osaka, Hokkaido—Japan’s cash culture is deeply rooted, and many stores still only accept cash (credit card penetration is only 60%). People buying Japanese cosmetics, clothing, anime merchandise also need to pay directly in yen. Long-term students or working holidaymakers also benefit from exchanging in advance to lock in rates and avoid sudden fluctuations.

A Golden Hedge Option The yen is one of the world’s three major safe-haven currencies alongside USD and Swiss Franc. Japan’s economy is stable, debt is low, and during market turbulence, funds automatically flow into yen to preserve capital. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%—this hedging effect alone makes it worth serious consideration for Taiwanese investors.

Interest Rate Arbitrage Opportunities Japan’s long-term ultra-low interest rate (only 0.5%) has recently changed—Bank of Japan Governor Ueda Kazuo has been hawkish lately, with market expectations of rate hikes to 0.75% (a 30-year high). Japanese bond yields have surged to a 17-year high of 1.93%. The US-Japan interest rate differential has narrowed from 4.0%, but it still remains attractive for arbitrageurs borrowing yen and investing in USD.

Since the beginning of the year, the NT dollar to yen exchange rate has risen from 4.46 to 4.85, an appreciation of 8.7%. In the second half of the year, Taiwan’s currency exchange demand surged by 25%, mainly driven by travel recovery and hedging needs.

4 ways to exchange yen, which is the most cost-effective?

Exchanging yen isn’t only through banks. The difference in exchange rates can be several hundred NT dollars, and choosing the wrong method can lead to bigger losses. We break down the four most common channels.

Method 1: Bank Counter Cash Exchange

Walk into a bank or airport counter with NT dollars and exchange for yen on the spot. This is the most traditional and costly method.

Banks use the “cash selling rate,” which is 1-2% worse than the market spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/yen (1 NT$ = 4.85 yen). Some banks also charge an extra handling fee of 100-200 NT$.

Exchanging 50,000 NT$, you lose about 1,500-2,000 NT$. Suitable only for small emergencies or urgent airport needs.

Pros: Safe, denominations available, staff assistance
Cons: Rate difference, limited operating hours
Best for: Urgent small amounts, last-minute needs

Method 2: Online Currency Exchange + ATM/Counter Withdrawal

Use bank app or online banking to convert NT$ directly into yen and deposit into a foreign currency account, enjoying a better “spot selling rate” (about 1% better than cash rate). If you need cash, go to the counter or ATM to withdraw, which will incur a handling fee starting from 100 NT$.

Suitable for those with some investment experience, allowing you to buy in batches at lower rates to average costs. Apps from E.SUN, Taiwan Bank, Mega Bank support this.

Loss of about 500-1,000 NT$ (based on 50,000 NT$). If you have a foreign currency account, you can also do yen fixed deposits with an annual interest rate of 1.5-1.8%, earning steady returns.

Pros: 24/7 operation, batch entry, favorable rates
Cons: Need a foreign currency account, withdrawal fees apply
Best for: Forex beginners, long-term investors

Method 3: Online Currency Conversion + Branch Pickup

This is the smartest way—no need for a foreign currency account. Fill in the amount, branch, and date on the bank’s website, complete the transfer, then bring ID and transaction notice to the branch to pick up the cash. Taiwan Bank’s “Easy Purchase” has no handling fee (pay with TaiwanPay for just 10 NT$), and offers a 0.5% rate advantage.

Key advantage: you can reserve airport branches for pickup. Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours—perfect for picking up cash before departure.

Loss of about 300-800 NT$ (based on 50,000 NT$). This is the best plan for travel.

Pros: No handling fee, better rate, airport pickup available
Cons: Need to book 1-3 days in advance, branch pickup cannot be changed
Best for: Planned travelers, pre-trip arrangements

Method 4: Foreign Currency ATM Withdrawal 24/7

Use a chip-enabled bank card to withdraw yen at foreign currency ATMs, supporting 24-hour operation, cross-bank withdrawals for just 5 NT$ (deducted directly from NT$ account). Shengfeng Bank’s foreign currency ATMs have a daily limit of 150,000 NT$, with no exchange fee.

Disadvantages: limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash may run out during peak times. By the end of 2025, Japan ATM withdrawal services will require international cards.

Loss of about 800-1,200 NT$ (based on 50,000 NT$). Suitable for those who can’t visit a bank or need cash urgently.

Pros: Instant withdrawal, flexible, cheap cross-bank
Cons: Few locations, fixed denominations, possible cash shortages
Best for: Emergency needs, no time for bank visits

Cost comparison of the four methods

How much NT$ for 100,000 yen?

This is the most common question. The exchange calculation is simple: Yen amount ÷ rate = NT$ amount

Using Taiwan Bank’s rate on December 10, 2025:

• Cash selling: 0.2060 NT$/yen → 100,000 yen ÷ 0.2060 ≈ 48,544 NT$
• Spot selling: 0.2055 NT$/yen → 100,000 yen ÷ 0.2055 ≈ 48,663 NT$

The difference is less than 150 NT$. But people exchanging 100,000 yen usually do it in multiple transactions. By batching and choosing the right method, you can save 500-1,000 NT$.

In reality, many ask “How many yen for 10,000 NT$?” The answer is the reverse: 10,000 NT$ × 4.85 = about 48,500 yen (using cash selling rate).

Is it worthwhile to exchange now?

To be honest—exchanging yen now is advantageous, but do it in batches.

Since the start of the year, the NT$ to yen rate has risen from 4.46 to 4.85, an 8.7% increase. For Taiwanese investors, currency gains are quite good, especially considering the NT$ may depreciate further.

However, yen has been volatile recently. The US entering a rate cut cycle supports the yen, and the Bank of Japan’s hawkish signals are rising. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term may rebound to 155, but long-term forecasts suggest below 150.

Arbitrage carries risks—large players borrowing low-interest yen and investing in high-yield USD might withdraw, putting downward pressure on yen, causing fluctuations of 2-5%. Therefore, avoid converting all at once; instead, buy in batches to average costs.

After exchanging yen, what next? Don’t let your money sit idle

Once you have yen, don’t just leave it sitting. Consider these options:

Yen Fixed Deposit — The safest. E.SUN and Taiwan Bank offer foreign currency accounts starting from 10,000 yen, with annual interest rates of 1.5-1.8%. Risk-free, steady income.

Yen Insurance Policies — Medium-term allocation. Cathay, Fubon life insurance savings plans with guaranteed 2-3% interest, locking in returns.

Yen ETFs (like 00675U, 00703) — Growth-oriented. Yuanta 00675U tracks yen indices, can be bought as fractional shares via broker apps, with easy dollar-cost averaging, annual management fee of 0.4%.

Yen Forex Trading — Advanced. Trade USD/JPY or EUR/JPY directly, with long and short options, 24-hour trading, using small capital to capture exchange rate movements. Flexible but requires knowledge.

Though yen is a safe-haven currency, global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could depress it. Long-term investors prefer ETFs for peace of mind; short-term traders may consider forex.

Quick FAQs

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

Cash rate is the bank’s quote for physical cash, usually worse but immediate. Spot rate is the FX market price for T+2 settlement, more favorable but requires waiting, mainly for electronic transfers.

What to bring for currency exchange?

ID + passport (or residence permit). Amounts over 100,000 NT$ may require source of funds declaration. For online booking, bring transaction notice. Under 20 years old need parental accompaniment.

Daily ATM withdrawal limit?

Different banks have different limits (after 2025, many are 10-15万 NT$ per day). Our bank cards support higher limits (12-15万), but cross-bank withdrawals may be restricted. Check with your issuing bank beforehand.

Summary

Yen has evolved from a travel pocket money to an asset with hedging and investment value. Whether for next year’s trip or to position during NT$ depreciation, mastering “batch exchange + financial management after exchange” can lower costs and maximize returns.

Beginners should start with Taiwan Bank’s online exchange + airport pickup, or use foreign currency ATMs. Once familiar, move on to fixed deposits, ETFs, or even small forex trades. This way, you can enjoy cost-effective travel and add a layer of protection during market turbulence.