Comprehensive Guide to Yen Exchange: Cost Comparison of 4 Major Methods, Teaching You How to Exchange Money Most Economically

In the era of Taiwan dollar depreciation, transferring funds into safe-haven currencies has become a popular choice for many. As the Taiwan dollar against the Japanese yen appreciates to 4.85 (as of 2025/12/10 official rate), the topic of currency exchange into yen is heating up again. Whether planning to travel to Japan next year or wanting to hedge Taiwan stock market risks through yen assets, knowing how to choose the right currency exchange channels can save you a lot of costs. This article will clarify the four most common methods of exchanging into yen, helping you easily find the most suitable option.

Why is it worth exchanging for yen? It’s not just for travel currency

Many people think yen is only used for spending when traveling abroad, but it’s much more than that.

Everyday life: When traveling in Japan, most shops in Tokyo and Osaka still primarily accept cash (credit card penetration is only about 60%); those purchasing Japanese cosmetics, clothing, or anime merchandise for proxy shopping need to pay directly in yen; students planning to study or work in Japan often exchange currency in advance to avoid exchange rate fluctuations increasing expenses.

Investment perspective: Yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc), due to Japan’s stable economy and relatively low debt risk. During global market turmoil, funds tend to flow into yen for safety—for example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, serving as a buffer against a 10% stock market decline. For Taiwanese investors, holding yen positions can effectively hedge Taiwan stock market volatility. Additionally, Japan’s long-term ultra-low interest rate policy (interest rate at only 0.5%) makes yen a financing currency for arbitrage trades, with many funds borrowing yen at low interest and investing in higher-yield USD (currently about 4.0% interest rate differential), then closing positions when risks rise.

Four main ways to exchange into yen

Many people think exchanging yen is simple—just go to the bank. But in reality, choosing different channels can result in exchange rate spreads that might cost you the equivalent of several cups of bubble tea. Below, we analyze the costs and features of each method.

Method 1: Bank Counter Cash Exchange

Bring cash NT$ to a bank branch or airport counter and exchange for yen cash on the spot. This is the most traditional and straightforward method, but often the most expensive.

Key point: Use the “cash selling rate”—which is about 1-2% worse than the spot rate—and add any bank handling fees, making the overall cost quite significant. For example, as of 2025/12/10, Taiwan Bank’s cash selling rate is approximately 0.2060 NT$ per yen (meaning NT$1 can buy about 4.85 yen).

Estimating for NT$50,000 exchanged, the cost of cash exchange at the counter is roughly a loss of NT$1,500–2,000.

Advantages: Safe and reliable, immediate cash pickup, denominations available (1,000, 5,000, 10,000 yen), staff assistance on site.

Disadvantages: Exchange rate spread, limited to bank operating hours (9:00-15:30 on weekdays), some banks may charge extra fees.

Who’s it suitable for: Those unfamiliar with online platforms, needing small amounts for emergency or last-minute travel.

Major banks’ cash selling rates and handling fees (as of 2025/12/10):

Method 2: Online Currency Conversion with Withdrawal Later

Use bank app or online banking to convert NT$ into yen and deposit into a foreign currency account. This uses the “spot selling rate”—which is about 1% better than the cash selling rate. To withdraw cash, you need to visit a branch or use an FX ATM, which incurs additional spread and handling fees (starting around NT$100).

For example, with E.SUN Bank, after converting via app, if you want to withdraw cash, the fee equals the difference between spot and cash rates, with a minimum NT$100.

This method’s advantage is observing exchange rate trends, allowing you to buy in batches at low points (e.g., when NT$ to yen drops below 4.80), averaging the exchange cost.

Advantages: 24/7 operation, ability to buy in installments for average cost, relatively favorable rates.

Disadvantages: Need to open a foreign currency account in advance, withdrawal incurs additional fees (usually NT$5–100 across banks).

Who’s it suitable for: Those experienced with forex investments, frequently using foreign currency accounts, and willing to transfer yen into fixed deposits (currently about 1.5–1.8% annual interest) for stable returns.

Estimating for NT$50,000 exchanged, the cost is roughly NT$500–1,000.

Method 3: Online Currency Purchase Reservation, Pick Up at Airport or Designated Branch

No need to open a foreign currency account first. Fill in currency, amount, pickup branch, and date on the bank’s website. After transferring funds, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with airport pickup options.

Taiwan Bank’s online exchange is fee-free (if paid via Taiwan Pay, only NT$10), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, suitable for picking up yen right before departure.

Advantages: Better rates, often no handling fee, airport pickup convenience, no queueing.

Disadvantages: Need to book 1–3 days in advance, pickup limited to bank hours, branch assignment cannot be changed once set.

Who’s it suitable for: Planned travelers who want to pick up yen at the airport before departure.

Estimating for NT$50,000, the cost is roughly NT$300–800.

Method 4: 24-Hour Foreign Currency ATM Withdrawal

Use a chip-enabled bank card to withdraw yen cash from FX ATMs. The biggest advantage is 24/7 availability, even supporting cross-bank withdrawals (NT$5 fee from NT$ accounts). Major currencies are supported, but the number of ATMs is limited (~200 nationwide).

For example, Sinopac Bank’s FX ATM service allows NT$150,000 daily withdrawal limit from NT$ accounts with no additional FX fee.

Note that Japan’s ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). The denominations are fixed (1,000, 5,000, 10,000 yen), and cash may run out during peak times (especially at airports). Don’t wait until the last minute to withdraw.

Advantages: Instant cash, maximum flexibility, low cross-bank withdrawal fee.

Disadvantages: Limited ATM locations, fixed denominations, possible cash shortages at peak times.

Who’s it suitable for: Those in a hurry, unable to visit bank branches during hours, needing last-minute cash.

Estimating for NT$50,000, the cost is roughly NT$800–1,200.

Summary table of costs and suitable scenarios:

Is it worthwhile to exchange yen now? Exchange rate trend analysis

As of 2025/12/10, the NT$ to yen rate is about 4.85, meaning NT$1 equals 4.85 yen. Compared to the start of the year at 4.46, it has appreciated by about 8.7%, representing a significant gain for Taiwanese investors holding yen. Amid the NT$ facing depreciation pressure, the appeal of moving into yen has increased. Observations show that in the second half of 2025, demand for yen exchange grew by 25%, mainly driven by travel recovery and safe-haven asset allocation.

Current assessment: Yes, but operate in batches.

The yen exchange rate remains within a relatively wide fluctuation range. With the US entering a rate-cut cycle, the yen is supported, but the Bank of Japan (BOJ) is also on the verge of raising rates. BOJ Governor Ueda recently made hawkish comments, pushing rate hike expectations to 80%, with a December 19 meeting expected to raise rates by 0.25bps to 0.75% (a 30-year high), and Japanese government bond yields reaching 17-year highs of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now, with short-term support at 155, but medium to long-term trend is expected below 150.

Investment advice: Yen as a safe-haven currency is suitable for hedging Taiwan stock market volatility, but short-term arbitrage closing risks should not be ignored, which could cause 2-5% fluctuations. The best approach is to buy in batches and avoid converting all at once.

What after exchanging into yen? Keep your funds growing

After exchanging into yen, don’t let your money sit idle in the account without interest. Consider allocating it into the following four income channels, especially suitable for small-scale beginners.

1. Yen Fixed Deposit (Conservative)
Open a foreign currency account at E.SUN or Taiwan Bank, deposit yen online. Minimum NT$10,000 equivalent, with current annual interest around 1.5–1.8%.

2. Yen Insurance Policy (Medium-term allocation)
Buy yen savings insurance from Cathay Life or Fubon Life, with guaranteed interest rates of 2–3%, suitable for medium-term funds.

3. Yen ETFs (Growth-oriented)
Like Yuanta 00675U or 00703, tracking yen exchange rate indices, can be bought as fractional shares via securities apps, suitable for regular investment. Management fee about 0.4%, diversified risk.

4. Yen Forex Trading (Swing trading)
Trade yen currency pairs like USD/JPY or EUR/JPY directly on forex platforms, capturing exchange rate movements. Advantages include two-way trading, 24-hour market, small capital start. Platforms like Mitrade offer zero commission, low spreads, stop-loss/take-profit tools.

While yen has hedging features, it also fluctuates bidirectionally. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical tensions (e.g., Taiwan Strait, Middle East) may weaken yen. Exercise caution when investing.

FAQs

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

Cash rate is the buy/sell rate banks offer for physical cash (notes/coins), used for travel exchange or on-site transactions. It provides immediate cash and convenience but is usually 1-2% worse than the spot rate, with higher overall costs.

Spot rate is the exchange rate settled within two business days (T+2) in the forex market, mainly used for electronic transfers, interbank settlements, import/export, or personal foreign currency accounts. It’s closer to the market’s real price but takes T+2 days to settle.

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

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

Q. What documents are needed for currency exchange?

For cash exchange at counters, Taiwanese citizens need ID and passport; foreigners need passport and residence permit. For corporate exchange, business registration is required. If booking online (online exchange), bring transaction notice. Minors under 20 need parental consent; large amounts (over NT$100,000) may require source of funds declaration.

Q. What’s the limit for foreign currency ATM withdrawal in Taiwan?

From October 2025, limits are being tightened. Many banks have reduced digital account limits to NT$100,000 per day. Main banks’ policies:

Plan ahead during peak times (e.g., airports), or split withdrawals to avoid cash shortages.

Summary: The smart way to exchange yen

Yen is no longer just “pocket money for travel,” but a versatile asset with hedging and small investment value. Whether for next year’s trip or hedging Taiwan market risks during a depreciation period, following the principles of “batch exchange + active asset allocation” can minimize costs and maximize returns.

Beginners are advised to start with the simplest options like “Taiwan Bank online exchange + airport pickup” or “FX ATM withdrawal,” then gradually explore fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of asset protection during global market turbulence.