Japanese Yen Exchange Guide: Is it more cost-effective to exchange money at the airport or online?

As of December 10, 2025, the TWD to JPY exchange rate has reached 4.85, an approximately 8.7% appreciation from the 4.46 at the beginning of the year. As Japanese travel popularity rebounds, the demand for yen has also surged significantly. However, many people are unaware that choosing different channels for currency exchange can cost you an extra 1,000-2,000 NT dollars. This article analyzes the true costs of four currency exchange methods to help you make smarter preparations before going abroad.

Why exchange for yen now?

The Japanese yen is no longer just pocket money for travel; it has become an asset with multiple values.

Travel and daily expenses: Many Japanese stores still rely on cash transactions (credit card penetration is only 60%), whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, cash is needed. Purchasing agents, Japanese online auctions, studying abroad, working holidays—all require yen payments.

Financial investment: The yen is recognized globally as one of the three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s stable economy and relatively low debt mean that during market turbulence, funds tend to flow into yen for safety. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, serving as a hedge during stock market declines. For Taiwanese investors, holding yen can effectively hedge against Taiwan stock risks.

Additionally, Japan maintains a long-term ultra-low interest rate policy (currently only 0.5%), making the yen a financing currency. Many investors borrow yen at low interest to convert into higher-yield USD investments (the USD-JPY interest rate differential is about 4.0%), then close positions and buy back yen when risks increase, creating profit opportunities.

Is it cost-effective to exchange yen now? Staggered operations are key

Answer: Yes, but you should buy in installments.

Currently, the yen exchange rate is quite volatile. The US entering a rate-cut cycle supports the yen, but the more noteworthy factor is the Bank of Japan’s rate hike expectations. BOJ Governor Ueda Kazuo’s recent hawkish comments have pushed market expectations of rate hikes to 80%, with a 0.25 percentage point increase to 0.75% expected at the December 19 meeting (a 30-year high). Japanese government bond yields also hit a 17-year high of 1.93%.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. In the short term, it may rebound to 155, but medium to long-term forecasts suggest it will stay below 150. The cost of exchanging for yen is already considerable, but due to ongoing exchange rate fluctuations, it’s advisable to buy in parts to avoid bearing all the risk at once.

Comprehensive comparison of four yen exchange methods in Taiwan

Many people are accustomed to exchanging currency at counters, but just the exchange rate difference could cost you several cups of drinks. We’ve summarized the latest four channels, detailing their pros and cons.

Method 1: Bank or airport counter cash exchange

This is the most traditional approach—bringing NT dollars cash directly to a bank branch or airport counter to exchange for yen cash. It seems simple and convenient, but it uses the “cash selling rate” (about 1-2% worse than the spot rate), making it the most expensive overall. It’s recommended only as an emergency backup.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 NT dollars per yen, meaning 1 NT dollar can buy 4.85 yen. Some banks also charge additional handling fees, increasing costs further.

If you exchange NT$50,000, the total cost for cash exchange at the counter is about NT$1,500-2,000 (including spread and fees). Advantages include safety, full denominations (e.g., 1,000, 5,000, 10,000 yen), and on-site assistance from staff. Disadvantages are limited to bank hours (weekday 9:00-15:30) and poorer rates. Best suited for those unfamiliar with online operations or needing small amounts for urgent airport use.

Method 2: Online exchange, withdrawal at counter or ATM

Using bank apps or online banking, convert NT dollars 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, you can withdraw at counters or foreign currency ATMs, but additional spread or withdrawal fees (~NT$100) apply.

This method suits those wanting to observe exchange rate trends and buy in parts at low points (e.g., when NT/JPY is below 4.80). For NT$50,000, total costs are about NT$500-1,000. Advantages include 24-hour operation, ability to buy in installments for an average cost, and relatively favorable rates. Disadvantages are the need to open a foreign currency account and additional fees for cash withdrawal. Best for those experienced with forex or frequently using foreign currency accounts. After exchange, you can also invest in yen deposits (current annual interest rate about 1.5-1.8%).

Method 3: Online currency settlement, designated branch pickup

This is the smartest way to exchange money at the airport. No need for a foreign currency account—just fill in currency, amount, pickup branch, and date on the bank’s official website. After transferring funds, bring ID and transaction notification to pick up in person. Taiwan Bank and Mega International Bank offer this service, with appointment options at airport branches to avoid last-minute queues.

Taiwan Bank’s “Easy Purchase” online currency settlement has no handling fee (pay with Taiwan Pay, only NT$10), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, very convenient. For NT$50,000, costs are about NT$300-800. Advantages include favorable rates, often no handling fees, and the ability to choose airport pickup. Disadvantages are the need to book 1-3 days in advance and limited pickup hours. Ideal for travelers with a planned schedule who want to reserve before departure.

Method 4: Foreign currency ATM withdrawal anytime

Using a chip-enabled bank card, withdraw yen cash at foreign currency ATMs, supporting 24-hour operation and interbank withdrawals (from NT dollar accounts, only NT$5 fee). Withdrawal limits vary by bank; for example, E.SUN Bank’s foreign currency ATM allows NT$150,000 per day from a NT dollar account, with no exchange fee.

Advantages include instant cash, high flexibility, and direct deduction from NT dollar accounts to save fees. Disadvantages are limited locations (~200 nationwide), limited denominations (usually 1,000, 5,000, 10,000 yen), and potential cash shortages during peak times (e.g., busy airports). It’s recommended not to wait until the last minute to withdraw. For NT$50,000, costs are about NT$800-1,200. Best for those with no time to visit banks or needing urgent cash.

Cost overview for exchanging NT$50,000 to yen

Practical tips: How to get the best exchange rate?

Step 1: Observe exchange rates 1-3 weeks in advance. Once you find a relatively low point, decide on the amount to exchange. No need to wait for the absolute bottom, as timing precisely is difficult; staggered buying is more practical.

Step 2: Choose the channel based on your purpose. For travel, “online currency settlement + airport pickup” is most convenient; for small investments, “online exchange + foreign currency account” offers flexibility; for urgent needs, foreign currency ATMs are lifesavers.

Step 3: After exchanging, don’t leave the money idle without earning interest. Consider yen deposits (interest rate 1.5-1.8%), yen insurance policies (guaranteed 2-3%), yen ETFs (e.g., Yuanta 00675U tracking yen index), or small forex swing trades.

While yen has hedging features, it also fluctuates bidirectionally. BOJ rate hikes are bullish, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could depress the currency. For investment purposes, yen ETFs diversify risk; for trading, USD/JPY and EUR/JPY are classic pairs to capture exchange rate movements.

Summary

The yen has evolved from simple travel “pocket money” to an asset with hedging and investment value. Whether you plan to travel to Japan next year or want to hedge against TWD depreciation, mastering “staggered exchange + don’t leave the money idle” principles can minimize costs and maximize returns.

Beginners are advised to start with the simplest options like “online currency settlement + airport pickup” or “foreign currency ATM,” then gradually move to deposits, ETFs, or small forex trades based on needs. This way, you can enjoy more cost-effective travel and add a layer of risk protection amid global market fluctuations. Remember, airport money exchange doesn’t have to be done at counters—early planning often saves more.