Choosing the right bank and the right method can significantly reduce the cost of exchanging Japanese Yen.

In 2025, the NT$ to Japanese Yen exchange rate reaches 4.85, and many people are starting to consider exchanging for Yen. But did you know? For the same NT$50,000, simply choosing different banks and methods can result in a cost difference of over NT$1,700—enough to buy several bento boxes in Japan.

The Three Main Reasons to Exchange for Yen

Travel and daily life applications are the most direct: cash usage in Japanese stores remains high (credit card penetration is only 60%), plus needs like purchasing on behalf, online shopping for Japanese goods, studying abroad, and part-time work, make Yen cash always a practical tool.

Financial asset allocation runs deeper: the Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s economy is stable with relatively low debt. During market turbulence, funds flow into Yen—during the Russia-Ukraine conflict in 2022, Yen appreciated 8% in a week, while stocks fell 10%, demonstrating its safe-haven value. For Taiwanese investors, exchanging for Yen is like insuring against Taiwan stock market volatility.

Arbitrage and investment returns: Japan’s ultra-low interest rate policy (~0.5%) makes Yen a financing tool. Many investors borrow Yen to invest in higher-yield assets, with a USD-JPY interest rate differential up to 4.0%. When risks rise, closing positions and buying back Yen can generate profits.

4 Ways to Exchange Currency, Which Bank Offers the Best Rate?

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

Bring NT$ to a bank branch or airport counter to receive Yen cash. Sounds simple, but it uses the “cash selling rate,” usually 1-2% worse than the spot market rate.

Based on major Taiwanese bank rates on December 10, 2025:

Advantages: Safe, full denominations (1,000, 5,000, 10,000 Yen), on-site assistance. Disadvantages: Limited to business hours (Weekdays 9:00-15:30), worse rates, some banks charge handling fees. Estimated cost for NT$50,000: NT$1,500–2,000 loss. Suitable for: Elderly, urgent airport needs, small temporary exchanges.

Method 2: Online exchange, withdrawal at counter or ATM—balanced choice

Use bank app or online banking to convert NT$ to Yen at the “spot sell rate” (about 1% better than cash rate), deposit into a foreign currency account. To get cash, go to a counter or foreign currency ATM, incurring a handling fee of NT$100+.

Advantages: 24/7 operation, better rates, allows batch lowering average cost. Disadvantages: Need foreign currency account, withdrawal fees (NT$5-100 cross-bank). Estimated cost for NT$50,000: NT$500–1,000 loss. Suitable for: Experienced forex investors, those combining with Yen fixed deposits (annual interest 1.5-1.8%).

Method 3: Online currency settlement, airport or designated branch pickup—best before travel

Fill in currency, amount, pickup branch, and date on bank website. After transfer, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega International support this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay NT$10 via TaiwanPay), with about 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), very convenient.

Advantages: Favorable rates, often no fees, direct airport pickup without visiting the bank. Disadvantages: Need prior appointment (1-3 days), pickup location cannot be changed, only during bank hours. Estimated cost for NT$50,000: NT$300–800 loss. Suitable for: Planned travelers who want quick access before departure.

Method 4: Foreign currency ATM withdrawal—emergency night-time solution

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen cash. Benefits: 24-hour operation, cross-bank fee NT$5 (deducted from NT$ account). Limited locations (~200 nationwide), currency and denomination restrictions (fixed 1,000, 5,000, 10,000 Yen).

E.SUN Bank’s foreign currency ATMs allow direct withdrawal from NT$ accounts, with a daily limit of NT$150,000 and no exchange fee. From late 2025, Japanese ATM services require international cards (Mastercard/Cirrus).

Advantages: Instant 24/7 withdrawal, from NT$ account, no extra exchange fee. Disadvantages: Limited locations, often out of cash during peak times (airports), fixed denominations. Estimated cost for NT$50,000: NT$800–1,200 loss. Suitable for: Last-minute needs, no time to visit bank.

Cost Comparison of the 4 Methods

Is it worth exchanging Yen now? Staged entry is key

As of December 10, 2025, the NT$ to Yen rate is about 4.85, up 8.7% from 4.46 at the start of the year. For Taiwanese investors, the exchange gain is significant. In the second half of 2025, Taiwan’s forex demand surged 25%, driven by travel recovery and safe-haven demand.

Is it a good time to exchange now? The answer is: yes, but with staged operations.

The Yen is currently volatile. The US entering a rate cut cycle supports Yen, and recent hawkish statements from BOJ Governor Ueda Kazuo push up rate hike expectations to 80%. The market expects a 0.25 basis point hike at the December 19 meeting to 0.75% (30-year high), with Japanese bond yields hitting 17-year highs at 1.93%. USD/JPY has fallen from 160 to around 154.58, likely oscillating around 155 short-term, with a long-term forecast below 150.

For investors, Yen’s safe-haven attribute is suitable for hedging Taiwan stock market fluctuations. But watch out for short-term risks: closing arbitrage positions may cause 2-5% volatility. The smartest approach: exchange gradually, diversify entries, rather than all at once.

After exchanging Yen, don’t let your money sit idle

Getting Yen cash is just the first step; the real investment decision begins afterward. Based on risk appetite, four common options:

1. Yen fixed deposit (conservative) Deposit online via E.SUN or Taiwan Bank, starting from NT$10,000, with annual interest 1.5-1.8%. Risk-free, regular interest, suitable for conservative investors.

2. Yen insurance policy (mid-term) Cathay and Fubon Life offer Yen savings insurance, with guaranteed interest rates of 2-3%, suitable for mid-term holding and financial planning.

3. Yen ETFs (growth) Products like Yuanta 00675U, 00703 track Yen indices. Can buy fractional shares via broker apps for dollar-cost averaging, diversifying risk and participating in long-term appreciation. Management fee about 0.4% annually.

4. Forex swing trading (high risk) Trade USD/JPY, EUR/JPY directly on forex platforms. Pros: long and short positions, 24-hour trading, small capital needed. Suitable for experienced traders.

While Yen has safe-haven features, it also fluctuates bidirectionally—rate hikes are bullish, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may depress it. For long-term, prioritize Yen ETFs; for short-term swings, focus on USD/JPY and EUR/JPY technicals.

Common Forex Exchange FAQs

Q: What’s the difference between cash rate and spot rate?

Cash rate is the bank’s quote for physical cash, convenient for immediate exchange, but usually 1-2% worse than the spot market rate plus fees. Spot rate is the FX market’s T+2 settlement price (electronic transfer, no physical cash), closer to international market price, more favorable—hence online exchange is cheaper than in-branch.

Q: How much Yen can I get with NT$10,000?

Using the formula: Yen amount = NT$ amount × current rate. At Taiwan Bank’s December 10 cash sell rate of 4.85, NT$10,000 ≈ 48,500 Yen. Using spot rate 4.87, about 48,700 Yen. The difference is about 200 Yen (~NT$40). Small, but when exchanging 50,000–100,000 NT$, the difference becomes noticeable.

Q: What documents are needed for in-branch exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. If online booking, bring transaction notice. Under 20 years old: parent’s consent + ID; over NT$100,000 exchange may require source of funds declaration.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

From late 2025, banks have adjusted limits:

Distribute withdrawals or use your own bank card to avoid NT$5 per cross-bank fee. During peak times (airports, year-end), cash often runs out—plan ahead for safety.

The Ultimate Beginner’s Guide to Exchanging Yen

Yen is no longer just for travel pocket money but a tool for safe-haven and investment asset allocation. For beginners, the steps:

Step 1: Choose bank and method—before travel, use Taiwan Bank’s “online settlement” or weekday “foreign currency ATM” for lowest cost. Step 2: Stage your exchange—monitor rates, enter gradually when NT$ to Yen drops below 4.80. Step 3: Allocate funds—after exchange, don’t leave idle; transfer into fixed deposits (1.5-1.8% annual) or Yen ETFs for regular investment.

This way, you save on exchange costs, enjoy better travel deals, and add a layer of protection during global market swings, while earning small profits. Three simple steps to minimize exchange costs and let Yen grow your money.