Must-know before exchanging 100,000 TWD to JPY: Breakdown of 4 major channels' costs + analysis of the best timing

In December 2025, the NT$ to JPY exchange rate has broken through the high of 4.85, which means whether you are planning a trip to Japan at the end of the year or want to hedge against NT$ depreciation, now is the critical moment to take action. But the question is—using the same NT$100,000, different channels may cost you an extra NT$2,000 or earn you NT$800 less. This article will break down the four real existing JPY exchange methods in the Taiwanese market, combined with the latest exchange rate data, to help you find the most cost-effective currency exchange strategy.

NT$100,000 to JPY: How big is the cost difference?

Many people think exchanging JPY only requires a trip to the bank, but in reality, differences in exchange rates, handling fees, and withdrawal methods directly affect your actual costs.

Taking NT$100,000 as an example, exchanging through different methods results in surprising cost differences:

• In-branch cash exchange: Loss of about NT$1,500–2,000 (due to cash selling rate 1-2% worse than market spot rate plus handling fee)
• Online currency exchange + in-branch withdrawal: Loss of about NT$500–1,000 (better exchange rate but withdrawal fee calculated separately)
• Online settlement + airport branch pickup: Loss of about NT$300–800 (no or low handling fee, but requires reservation)
• Foreign currency ATM instant withdrawal: Loss of about NT$800–1,200 (location restrictions, but flexible 24 hours)

This means choosing the right method can let you exchange nearly NT$2,000 more in JPY with NT$100,000.

Why is JPY worth exchanging? The threefold value from travel to investment

1. Practical travel: Japan still mainly uses cash

In Tokyo, Osaka, Hokkaido, despite about 60% credit card penetration, night bars, convenience stores, drugstores, shrines, and temples still predominantly handle transactions in cash. Many proxy sellers and Japanese online vendors also require direct payment in JPY, making cash JPY a necessity rather than an option.

2. Financial attribute: JPY is one of the world’s three major safe-haven currencies

The yen, along with USD and Swiss Franc, is an international safe-haven currency. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%—indicating yen holders automatically gain hedging protection. For Taiwanese investors, holding some JPY during volatile years in Taiwan stocks can significantly reduce overall asset volatility.

3. Investment opportunity: Low-interest financing + high-yield arbitrage

The Bank of Japan maintains ultra-low interest rates (currently 0.5%), making the yen a funding currency for global arbitrage trades. Many hedge funds borrow low-interest yen, convert to USD (USD/JPY interest rate differential up to 4.0%) for arbitrage. This means yen volatility often reflects global risk sentiment in advance; accurately grasping exchange rate changes can bring extra returns.

Four ways to exchange NT$100,000 to JPY compared

Method 1: In-branch cash exchange—most traditional but highest cost

Bring NT$ cash directly to a bank or airport branch and exchange for JPY cash on the spot. The operation is simple, but it uses the “cash selling rate” (1 JPY ≈ NT$0.2060 according to Taiwan Bank on December 10, 2025), which is 1-2% worse than the market spot rate, resulting in higher costs.

Based on Taiwan Bank’s December 10, 2025 rates, the cash selling rate is about 1 JPY ≈ NT$0.2060, so NT$100,000 can exchange for approximately 485,000 JPY. Some banks add handling fees of NT$100–200, further increasing costs.

Use case: Urgent needs, smaller amounts, travelers who prefer not to operate online systems. Not recommended for large exchanges over NT$100,000.

Method 2: Online exchange + in-branch/ATM withdrawal—balancing rate and flexibility

Use bank app or online banking to convert NT$ to JPY in a foreign currency account at a more favorable “spot selling rate” (about 4.87), then choose in-branch or foreign currency ATM withdrawal for cash.

Advantages include phased entry, observing exchange rate trends, and buying in smaller amounts when the rate is low (e.g., when NT$ to JPY is below 4.80), to average out costs. E.SUN Bank app offers exchange with a JPY deposit annual interest rate of 1.5–1.8%, so NT$100,000 in JPY earns NT$1,500–1,800 annually, offsetting some exchange costs.

Note: Requires opening a foreign currency account in advance; withdrawal fees (NT$5–100 cross-bank) still apply.

Method 3: Online settlement + airport designated branch pickup—best pre-departure reservation

No need for a foreign currency account. Fill in amount, pickup location (e.g., 14 Taiwan Bank counters at Taoyuan Airport), and date on the bank’s website. After online settlement, bring ID and transaction notification to pick up in person.

Taiwan Bank’s “Easy Purchase” online settlement has no handling fee (pay NT$10 via Taiwan Pay), with about 0.5% better exchange rate. There are two 24-hour branches at the airport, suitable for last-minute cash pickup before flight. NT$100,000 via this method can save up to NT$1,200 compared to in-branch cash exchange.

Limitations: Needs 1–3 days reservation in advance; pickup time limited by bank hours; cannot change branch once selected.

Method 4: Foreign currency ATM—24-hour instant withdrawal, but limited locations

Use a chip-enabled bank card at foreign currency ATMs to withdraw JPY cash, deducting from NT$ account, with cross-bank fee of NT$5. Fubon Bank offers this service, with a daily withdrawal limit equivalent to NT$150,000, no exchange fee.

However, there are only about 200 foreign currency ATMs nationwide, with fixed denominations (1,000/5,000/10,000 JPY), which can sell out during peak times. Suitable for busy professionals with no time to visit banks or for urgent needs.

Note: By the end of 2025, Japan ATM withdrawal services will require Mastercard or Cirrus international cards.

Is it worthwhile to exchange JPY now? Exchange rate trends and best timing

On December 10, 2025, the NT$ to JPY rate was 4.85, compared to 4.46 at the start of the year, appreciating 8.7% annually. This benefits JPY holders—exchange gains are already significant. In the second half of 2025, demand for JPY in Taiwan increased by 25%, mainly driven by travel recovery and hedging needs.

Recent exchange rate trend analysis

The US is entering a rate-cut cycle, which should theoretically weaken USD and strengthen JPY. But the current market focus is on the Bank of Japan’s rate hike expectations—recent hawkish comments by Governor Ueda have increased expectations to 80%, with a 0.25 basis point hike to 0.75% expected at the December 19 meeting (a 30-year high). The 10-year Japanese government bond yield has hit 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, with short-term fluctuations possibly reaching 155, but medium to long-term forecasts suggest it will fall below 150.

Investment exchange rate strategy

For investors holding JPY for investment purposes, the safe-haven attribute is clear, but beware of arbitrage closing causing short-term volatility (2–5%). Recommended approach:

Gradual entry: Enter in 3–4 tranches, gradually building positions around 155–154.5, avoiding full exposure at a single point.

Shift into interest-earning assets: After exchanging to JPY, idle funds can be moved into JPY deposits (annual interest 1.5–1.8%), JPY insurance policies (guaranteed interest 2–3%), or JPY ETFs (e.g., Yuanta 00675U, annual management fee 0.4%).

Strategies to grow your wealth after exchanging NT$100,000 to JPY

JPY has evolved from a purely travel currency to a wealth management tool. After exchange, consider the following allocations:

1. JPY deposit—conservative, annual yield 1.5–1.8%

Open foreign currency accounts with E.SUN or Taiwan Bank, deposit online starting from 10,000 JPY. NT$100,000 (about 485,000 JPY) in a year can earn NT$7,000–8,700 in interest.

2. JPY insurance policy—medium-term holding, annual yield 2–3%

Cathay, Fubon Life offer JPY savings insurance with guaranteed interest rates of 2–3%, suitable for 3–5 year holding.

3. JPY ETF—growth-oriented income asset

Yuanta 00675U tracks the JPY index, can be bought in fractional shares via broker apps, supports dollar-cost averaging. Management fee 0.4%, enjoying both JPY appreciation and stock dividends.

4. Forex trading USD/JPY—swing trading for high returns

Trade USD/JPY on forex platforms (e.g., Mitrade), with zero commission and low spreads, suitable for short-term swing trading. Platforms offer stop-loss, take-profit, trailing stops, ideal for experienced traders.

Note: Forex trading involves high leverage risk; start with small amounts, master the rhythm before increasing positions.

New regulation reminder: 2025 foreign currency ATM withdrawal limit adjustment

From October 2025, many banks will strengthen anti-fraud measures, reducing the daily withdrawal limit for third-class digital accounts to NT$100,000. Key bank updates:

• China Trust: NT$120,000 per card per transaction/day; other bank cards NT$20,000 per transaction
• Taishin Bank: NT$150,000 per card per transaction/day; other bank cards NT$20,000 per transaction
• E.SUN Bank: NT$50,000 per transaction, NT$150,000 per day; other bank cards NT$20,000 per transaction

Suggestion: For NT$100,000 withdrawal, use your own bank’s card once to avoid cross-bank fees. During peak times (like at the airport), cash may run out quickly, so plan ahead.

Common questions about exchanging NT$100,000 to JPY

Q: How much is the difference between cash exchange rate and spot rate?

Cash exchange rate applies to physical cash transactions, with banks setting risk-based prices, typically 1–2% worse than spot. Spot rate is used for electronic transfers and T+2 settlement, close to international market prices. For NT$100,000, the difference is about NT$1,000–2,000.

Q: Is it more cost-effective to withdraw cash with a credit card in Japan?

Not necessarily. International cash withdrawals usually incur 1–3% overseas handling fees plus exchange rate conversion costs, often more expensive than using a foreign currency ATM in Taiwan. It’s better to exchange cash beforehand in Taiwan.

Q: What documents are needed to exchange NT$100,000 to JPY?

For in-branch transactions, bring ID and passport. Under 20 requires parental consent and accompanying. For amounts over NT$100,000, banks may require source of funds declaration. If pre-booked online, bring transaction notification.

Q: What if the JPY depreciates after exchange?

Short-term fluctuations of 2–5% are normal. For travel, exchange rate swings have limited impact. For investment, phased entry can diversify risk; after entering, move funds into deposits or ETFs to generate interest and hedge short-term volatility.

Summary

Exchanging NT$100,000 to JPY with the right method and timing can save over NT$2,000 in costs. Core principle: staggered exchange + allocate immediately after exchange.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer JPY into deposits, ETFs, or forex trading based on purpose. This way, you can enjoy cost-effective travel and add a layer of protection during global asset fluctuations.

Next time you travel or allocate assets, don’t just think about in-branch cash exchange—an intelligent currency exchange decision can make your NT$100,000 work harder and generate extra returns.