Yen exchange through four major channels: Are you choosing the right one with such different fees?

The NT$ to JPY exchange rate has risen to 4.85, an appreciation of 8.7% since the beginning of the year. This means that with the same amount of NT$, you can now buy more JPY. However, choosing the right method can result in cost differences of over NT$1,500.

In the past six months, Taiwan’s foreign exchange demand has surged by 25%, driven by the recovery in travel and hedging strategies. Many still stick to the old method of “going to the bank counter to exchange,” unaware that online remittance and foreign currency ATMs have long quietly changed the game. This article uses the latest exchange rates and real data to reveal the cost differences among four ways to exchange for JPY.

Why is it worth exchanging for JPY? Travel is just the surface reason

When it comes to exchanging for JPY, many people’s first reaction is “going abroad.” But in fact, the value of JPY goes far beyond that.

Everyday life: Japan’s cash culture is deeply ingrained, with only 60% credit card penetration. Purchasing Japanese cosmetics, online shopping for Japanese fashion, studying abroad and working part-time… these scenarios almost all require JPY.

Investment: JPY is one of the world’s three major safe-haven currencies alongside USD and CHF. During the Russia-Ukraine conflict in 2022, JPY appreciated 8% in one week, successfully offsetting a 10% decline in the stock market. For Taiwanese investors, holding JPY can serve as a protective measure during Taiwan stock market volatility.

Additionally, the Bank of Japan recently shifted to a hawkish stance—Governor Ueda Kazuo recently indicated an 80% chance of rate hikes, with a 0.25 bps increase to 0.75% expected at the December 19 meeting (a 30-year high), further supporting the potential for JPY appreciation.

Four ways to exchange for JPY, with significant cost differences

Method 1: In-person cash exchange—most expensive but safest

Bring NT$ cash directly to a bank or airport to exchange for JPY cash. Simple to operate, but using the “cash selling rate” (1-2% worse than the market spot rate), plus possible service fees, results in the highest overall cost.

Cost details (using Taiwan Bank’s rate as of December 10, 2025):

• Cash selling rate: 1 JPY ≈ NT$0.2060 (i.e., NT$1 = 4.85 JPY)
• Bank counter handling fee: NT$0-200

Exchanging NT$50,000 results in a loss of NT$1,500-2,000.

Pros: Immediate cash in hand, no account needed, suitable for airport urgent needs. Cons: Worst exchange rate, limited by bank hours. Ideal for: Small amounts, urgent needs, those unfamiliar with online operations.

Method 2: Online remittance then cash pickup—balanced approach

Use bank app or online banking to transfer NT$ into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate), then decide whether to pick up cash at the counter or withdraw from foreign currency ATMs.

The advantage is—you can observe exchange rate trends, and when rates are low (e.g., NT$ to JPY below 4.80), you can buy in batches to average the cost.

Cost details:

• Spot rate discount: about 0.5%
• Cash withdrawal fee: NT$100+ per transaction

Exchanging NT$50,000 results in a loss of NT$500-1,000.

Pros: 24-hour operation, better rates than in-person, allows for staggered purchases. Cons: Need to open a foreign currency account first, withdrawal fees apply. Ideal for: Forex experienced investors planning to exchange in parts.

Method 3: Online remittance, airport pickup—smartest choice

No foreign currency account needed. Fill in amount, currency, branch reservation, and pickup date on the bank’s website. After remittance, bring ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with airport branch pickup reservations.

Cost details:

• Taiwan Bank handling fee: NT$10 (via Taiwan Pay) or free
• Exchange rate advantage: about 0.5%

Exchanging NT$50,000 results in a loss of NT$300-800.

Pros: Favorable rates, often no handling fee, can specify 24-hour airport pickup points. Cons: Need to book 1-3 days in advance, pickup during business hours only. Ideal for: Travelers with clear schedules who want to pick up cash directly at the airport.

Method 4: Foreign currency ATM withdrawal—most flexible

Use a chip-enabled debit card to withdraw JPY cash from foreign currency ATMs. Operates 24/7, with only NT$5 cross-bank fee. About 200 machines nationwide, but limited in currency denominations and availability.

Cost details:

• Mega Bank daily limit: NT$150,000
• Cross-bank fee: NT$5
• No remittance fee

Exchanging NT$50,000 results in a loss of NT$800-1,200.

Pros: Instant withdrawal, high flexibility, low cross-bank fees. Cons: Limited ATM locations, fixed denominations (1000/5000/10000 JPY), cash may run out during peak times. Ideal for: Urgent needs, busy professionals who can’t visit the counter.

Cost comparison of the four methods (based on NT$50,000, December 2025 data)

Beginner tip: For amounts between NT$50,000-200,000, “online remittance” is most cost-effective; over NT$200,000, consider splitting into multiple batches, with NT$50,000-100,000 per withdrawal via ATM or counter.

Is it a good time to exchange for JPY? Exchange rate analysis

NT$ to JPY at 4.85, up 8.7% from the start of the year at 4.46. In other words, the same NT$ now has higher value.

But this doesn’t mean you should all at once exchange everything now. Although JPY is a safe-haven currency, short-term fluctuations remain at 2-5%. According to the latest market expectations:

Supporting factors: The Bank of Japan’s rate hike expectations are rising, with a 30-year high of 0.75% expected at the December meeting. JGB yields have hit a 17-year high of 1.93%, attracting arbitrage trades.

Risks: The US is entering a rate cut cycle, reducing arbitrage opportunities. If global risk assets attract capital again, unwinding arbitrage trades could weaken the JPY. Geopolitical tensions (Taiwan Strait, Middle East) may also cause short-term volatility.

Long-term outlook: USD/JPY could run below 150 (down from 160 at the start of the year), leaving room for JPY appreciation.

Practical advice: Use a dollar-cost averaging approach—exchange 2-3 times per month, NT$50,000-100,000 each time, to spread out exchange rate risks. Avoid all-at-once exchanges at high points.

After exchanging for JPY, how to avoid leaving it idle?

JPY should not just sit in an account earning zero interest. Four common follow-up allocations:

1. JPY fixed deposit—most stable Open foreign currency accounts at E.SUN Bank, Bank of Taiwan, etc., with a minimum of 10,000 JPY, annual interest rate 1.5-1.8%. Suitable for conservative investors, risk-free.

2. JPY savings insurance—medium-term holding Cathay, Fubon Life offer JPY savings policies, with guaranteed interest rates of 2-3%, suitable for 3-5 year holding periods.

3. JPY-related ETFs—growth allocation Like Yuanta 00675U (JPY index ETF), with 0.4% annual management fee, can buy fractional shares via broker apps. Suitable for regular investing and risk diversification.

4. Forex trading—swing operations Trade USD/JPY or EUR/JPY currency pairs directly to capture short-term exchange rate movements. Suitable for experienced traders, higher risk.

FAQs

Q: What’s the difference between cash rate and spot rate? Cash rate applies to physical cash transactions, involving labor and storage costs, usually 1-2% worse than the spot rate. Spot rate is used in interbank or electronic transfers, closer to international market prices, but settled T+2.

Q: How much JPY for NT$10,000? Using the formula: JPY = NT$ × current rate. At 4.85, NT$10,000 ≈ 48,500 JPY. At spot rate 4.87, about 48,700 JPY.

Q: How much NT$ for 200,000 USD? At current rates (~32-33), 200,000 USD ≈ NT$6.4-6.6 million. To convert to JPY, use NT$ to JPY rate 4.85: approximately 31-32 million JPY.

Q: What to bring for foreign currency exchange? Counter exchange: ID + passport (foreigners: passport + residence permit). Online booking requires transaction notification. Large amounts (>NT$100,000) may need source of funds declaration. Minors need parent accompaniment.

Q: Daily withdrawal limit at foreign currency ATMs? Post-October 2025, most banks set limits at NT$100,000-150,000 per day. CTBC, Taishin Bank are around NT$120,000-150,000. Consider splitting withdrawals or using your own bank card to avoid cross-bank fees.

Conclusion

JPY has evolved from “travel pocket money” to an asset with hedging and investment value. Currently, with the NT$ weakening pressure, transferring part of your funds into JPY can hedge risks and profit from exchange rate differences—if done correctly and timely.

Key tip: Use a staggered approach—buy in parts, and after full exchange, avoid sitting idle. Opt for online remittance or ATMs to lower costs, then transfer JPY into fixed deposits, ETFs, or savings policies to keep your assets growing. This way, you not only enjoy more cost-effective travel but also add a layer of protection in the global market.

For beginners, starting with “Taiwan Bank online remittance + airport pickup” is the safest. Advanced users can try staggered online remittance combined with fixed deposits or ETF investments—choose based on your capital size and risk appetite.