How to exchange Japanese Yen at the lowest cost? Master these 4 strategies to save thoroughly in one go

As of December 10, 2025, the Taiwanese dollar has surged to 4.85 against the Japanese yen, prompting those planning to travel abroad or hedge their assets to act. But do you know? Just choosing the right currency exchange method can save you over NT$1,500 in costs. This article breaks down the latest four methods to acquire Japanese yen, helping you find the most suitable approach.

Is it worthwhile to exchange for yen now? One number tells you

This year, the yen has appreciated by 8.7% (from 4.46 at the start of the year to 4.85), and according to observations, Taiwan’s demand for yen exchange has increased by 25% in the second half of the year. The rally mainly stems from two forces: the global interest rate cut cycle beginning to support the yen, and the Bank of Japan’s imminent rate hike.

BOJ Governor Ueda Kazuo has issued hawkish comments, with market expectations of a 0.25 basis point rate hike to 0.75% at the December 19 meeting (a 30-year high), and Japanese government bond yields have hit a 17-year high of 1.93%. Meanwhile, USD/JPY has fallen from a high of 160 at the start of the year to now 154.58, with short-term fluctuations possibly returning to 155, but medium to long-term forecasts suggest it will stay below 150.

Conclusion: Exchanging yen now is advantageous, but don’t convert all at once. Although the yen is one of the three major global safe-haven currencies (along with USD and Swiss Franc), short-term risks include arbitrage unwinding, which could cause fluctuations of 2-5%. It’s recommended to stagger your exchanges to maximize currency conversion benefits.

How much do the 4 yen acquisition methods differ in cost?

Many people think that exchanging yen at the bank is sufficient, but in reality, just the choice of method can cost you several cups of bubble tea more. Below are the four most mainstream channels in Taiwan, with estimated costs based on exchanging NT$50,000.

Method 1: In-person cash exchange｜Safe but most expensive

Go directly to a bank or airport counter to exchange NT$ cash for yen cash, using the “cash selling rate.” The problem is: this rate is about 1-2% worse than the spot rate, plus some fixed bank handling fees, making the overall cost the highest.

For example, Taiwan Bank’s quote as of 09:18 on December 10, 2025, shows a cash selling rate of about NT$0.2060 per yen (roughly NT$4.85 per 1 yen).

Comparison of cash selling rates across banks (2025/12/10):

Advantages: Safe, transparent, full denominations, assistance from staff
Disadvantages: Worst exchange rate, extra handling fees, limited to business hours (Weekdays 9:00-15:30)
Estimated cost (NT$50,000): Loss of NT$1,500–2,000
Suitable for: Those unfamiliar with online operations, needing small emergency cash exchanges

Method 2: Online currency settlement + airport pickup｜Best choice before traveling abroad

No need to open a foreign currency account in advance. Simply fill in currency, amount, pickup branch, and date via bank’s website or app. After remittance, bring ID and transaction notification to the counter for pickup. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online settlement has no handling fee (pay NT$10 via TaiwanPay), with about 0.5% better rates. This is the best plan for planned trips, especially since Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), allowing you to withdraw before departure.

Advantages: Better exchange rates, often no handling fees, airport pickup available
Disadvantages: Need to book in advance (1-3 days), pickup limited to bank hours
Estimated cost (NT$50,000): Loss NT$300–800
Suitable for: Well-planned trips, those who can book ahead, travelers wanting to withdraw at the airport

Method 3: Online currency exchange into account｜Suitable for small investors

Use online banking or app to convert NT$ into yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at ATM or counter, which incurs additional withdrawal fees (starting around NT$100).

For example, after currency exchange via E.Sun Bank app, withdrawal fees for yen cash are the difference between spot and cash rates, with a minimum of NT$100. This method suits those monitoring exchange rates, buying in batches at low points (e.g., when NT$ to yen is below 4.80).

Advantages: 24/7 operation, allows averaging costs through multiple purchases, better rates
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply (interbank NT$5–100)
Estimated cost (NT$50,000): Loss NT$500–1,000
Suitable for: Experienced forex investors, those frequently using foreign currency accounts

Method 4: Foreign currency ATM withdrawal｜Most flexible 24/7

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, supporting 24-hour and interbank transactions. Fubon Bank’s foreign currency ATMs allow withdrawal from NT$ accounts, with a daily limit of NT$150,000, no exchange fee, and a NT$5 interbank fee.

Foreign currency ATMs provide instant cash without queuing for staff assistance, but have only about 200 units nationwide, and fixed denominations (1,000/5,000/10,000 yen). During peak times (like airports), cash may run out. It’s recommended not to wait until the last minute to withdraw.

Advantages: Instant withdrawal, high flexibility, NT$ account deduction with only NT$5 interbank fee
Disadvantages: Limited locations and denominations, cash may run out during peak hours
Estimated cost (NT$50,000): Loss NT$800–1,200
Suitable for: Those with no time to visit banks, needing immediate cash

Cost comparison table of the 4 methods

Based on December 2025 data, estimated for exchanging NT$50,000:

Updated limits for foreign currency ATM withdrawals in Taiwan (2025 October new regulation)

Post-October 2025, ATM withdrawal limits vary by bank due to anti-fraud measures. The latest regulations are:

Reminder: Post-regulation, daily limits are often reduced to NT$100,000–150,000. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees. During peak hours (like airports), cash may sell out quickly, so plan ahead for safety.

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

Once you have yen, don’t just hold it passively (interest-free). Here are four options suitable for small-scale beginners to advance their financial management:

1. Yen fixed deposit｜Conservative
E.Sun and Taiwan Bank offer foreign currency accounts, with online deposits starting at 10,000 yen, annual interest rates of 1.5–1.8%.

2. Yen insurance policy｜Mid-term holding
Cathay Life and Fubon Life sell savings insurance with guaranteed interest rates of 2–3%.

3. Yen ETFs (00675U, 00703)｜Growth-oriented
Yuan Da’s 00675U tracks the yen index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging, with an annual management fee of 0.4%.

4. Forex swing trading｜Active
Trade yen currency pairs (USD/JPY or EUR/JPY) directly on forex platforms, capturing exchange rate fluctuations. Advantages include two-way trading, 24-hour operation, and small capital requirements.

Common Q&A

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

Cash rate is the rate banks offer for physical cash (bills/coins), with the advantage of immediate delivery but 1-2% worse than the spot rate. The spot rate is the foreign exchange market rate settled within T+2, used for electronic transfers and foreign currency accounts, offering more favorable rates close to market prices but requiring settlement time.

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

Using Taiwan Bank’s December 10, 2025, cash selling rate of about NT$4.85 per yen, NT$10,000 can buy approximately 48,500 yen. Using the spot selling rate (about NT$4.87), it’s roughly 48,700 yen, a difference of about 200 yen (roughly NT$40).

Q: What documents are needed to exchange foreign currency?

For in-person transactions, Taiwanese citizens need ID + passport; foreigners need passport + residence permit. If pre-booked online (online settlement), bring transaction notification. Minors under 20 require parental accompaniment and consent. For large exchanges (over NT$100,000), declaration of source of funds may be required.

Q: Is it safe to withdraw yen at foreign currency ATMs?

Yes, it’s as safe as using an ATM. The difference is that foreign currency ATMs dispense foreign cash directly. Insert your chip card, enter PIN, select currency and amount. The main risk during peak hours (like airports) is cash running out, and fixed denominations may limit flexibility, so plan ahead.

Conclusion

The yen is no longer just pocket money for travel; it also functions as a hedge and investment asset. Whether you’re preparing for a trip to Japan next year or hedging against the Taiwanese dollar’s depreciation, applying the principles of “staggered exchange + post-exchange financial management” can minimize costs.

For beginners, starting with “Taiwan Bank online settlement + airport pickup” or “ATM withdrawal for yen” is recommended, then gradually advancing to fixed deposits, ETFs, or swing trading based on your needs. This way, you can enjoy cost-effective travel and add an extra layer of protection amid global market volatility.