Japanese Yen Exchange Guide: 4 Tips to Save the Most, How to Exchange at the Best Rates

December 10, 2025, the NT$ to JPY exchange rate reaches 4.85, and many are eager to try. But before you actually take out your wallet, you need to understand—when exchanging yen, choosing different channels can eat up several cups of bubble tea just from the exchange rate difference.

This article will compare the four most common ways for Taiwanese to exchange JPY, so you can see exactly where every dollar goes, and also explain why JPY is worth exchanging and how to keep your money appreciating after the exchange.

First, ask yourself: Why am I exchanging JPY?

The Japanese yen ranks among the top three foreign currencies held by Taiwanese, but the reasons behind it are not just “I want to travel to Japan.”

Travel and daily expenses are the most straightforward needs. Department stores in Tokyo, drugstores in Osaka, resorts in Okinawa—most places still rely on cash (credit card penetration is only 60%), and purchasing groups need to transfer JPY directly to Japanese sellers. International students also need to prepare remittances in advance to avoid sudden fluctuations.

From an investment perspective, the yen’s role is even more special. It is one of the three major safe-haven currencies globally (the other two are USD and Swiss Franc). When stock markets fluctuate or geopolitical risks rise, funds tend to flow into the yen. For example, after the Russia-Ukraine conflict erupted in 2022, the yen appreciated by 8% within a week, while global stock markets plunged 10%—meaning using yen to hedge Taiwan stocks is a real strategy.

Moreover, the Bank of Japan has maintained a long-term low-interest-rate policy (currently only 0.75%), creating an arbitrage ecosystem: investors borrow yen at low interest, convert to higher-yield USD or other currencies for investment, with the US-Japan interest rate spread once exceeding 4%. When risks increase, they close positions and buy back yen, causing the yen to be in short supply and the exchange rate to surge.

In summary: exchanging yen is not just for travel; it’s also a hedging tool in asset allocation.

The 4 channels Taiwanese use to exchange yen—costs and processes explained

Many people instinctively walk into bank counters, but they often don’t realize this is usually the most expensive option. Here, we analyze each method based on real exchange rates, fees, and convenience.

Method 1: Bank counter cash exchange—most traditional but least cost-effective

Bring cash NT$ and go to a bank branch or airport counter to exchange for yen cash on the spot. It sounds simple and safe, but it’s the most costly among the four methods.

Why is it expensive? Banks use the “cash selling rate,” which is 1-2% worse than the market spot rate. For example, as of December 10, 2025, Taiwan Bank’s cash selling rate is 1 yen = NT$0.2060 (i.e., NT$1 = 4.85 yen), but online banking’s spot selling rate is about 4.87. The difference may seem small, but exchanging NT$50,000 results in nearly 200 yen less (about NT$40). Some banks like E.SUN and Cathay United also add a handling fee of NT$100-200.

When to use this? Only in three cases: 1) if you’re not comfortable with online banking, 2) if you need cash urgently (e.g., upon arriving in Japan and realizing you forgot to bring yen), 3) if the amount is small and fees are relatively insignificant. For large exchanges over NT$100,000, this method incurs significant losses.

Reference rates from major banks (2025/12/10): Taiwan Bank 0.2060, Mega Bank 0.2062, CTBC 0.2065, First Bank 0.2062, Hua Nan Bank 0.2061, Cathay United 0.2063. Fees range from free to NT$200.

Method 2: Online currency exchange transfer—advanced players’ choice

Use bank app or online banking to convert NT$ into yen and deposit into a foreign currency account, using a more favorable “spot selling rate.” If you need cash, you can withdraw at counters or foreign currency ATMs, but an additional withdrawal fee (~NT$100-200) applies.

Advantages? First, better exchange rates—about 1% cheaper than counters; second, flexible timing—24/7 operation; most importantly, you can buy in installments. When the rate is low (e.g., NT$ to yen below 4.80), buying in parts averages your cost, much better than a one-time lump sum.

Disadvantages? You need to have a foreign currency account (most already do). When withdrawing cash, cross-bank fees of NT$5-NT$100 may apply. Also, if you ultimately want cash, this fee cannot be avoided.

Who should use this? Those with forex experience, wanting to buy in low-rate periods, or who prefer to keep yen in the account as a fixed deposit. Currently, yen fixed deposit annual interest is about 1.5-1.8%, good for hedging NT$ depreciation.

Method 3: Online currency pre-order for pickup—best pre-departure plan

This is an underrated method. No need to hold a foreign currency account beforehand. Just fill in the amount, currency, and pickup branch on the bank’s website. After completing the online transaction, bring ID and transaction notice to pick up at the counter. Taiwan Bank and Mega Bank mainly offer this service, and you can pre-arrange pickup at Taoyuan Airport branches—conveniently, there are 14 Taiwan Bank outlets at the airport, two of which operate 24 hours.

Cost? About 0.5% exchange rate advantage, and most fees are waived (Taiwan Bank charges NT$10 if paid via Taiwan Pay). For NT$50,000, costs are between NT$300-NT$800—more than online exchange but less than counter, with maximum convenience.

Preconditions? Must book at least 1-3 days in advance. Once you choose the branch and time, it cannot be changed. Planning your trip and booking a week ahead allows you to pick up cash at the airport before boarding, saving the hassle of finding ATMs or exchange counters abroad.

Suitable for? Travelers with detailed plans, those who want to prepare large cash amounts in advance, or investors needing a lump sum.

Method 4: Foreign currency ATM withdrawal—24/7 access but with hidden limits

Insert a chip-enabled bank card into a foreign currency ATM to withdraw yen cash directly. About 200 machines are distributed across major banks, airports, and department stores nationwide. The biggest advantage is 24/7 operation, cross-bank withdrawal fee of NT$5, and direct deduction from your NT$ account (no need to convert first).

Real situation: CTBC’s foreign currency ATMs have a daily limit of the equivalent of NT$150,000, with no extra forex fee. But note, the number of ATMs is limited, and the available denominations are usually only 1,000, 5,000, or 10,000 yen notes. During peak times (holidays, Golden Week), cash often runs out, and you may find no stock when you go to withdraw.

Warning: Domestic ATM withdrawal services in Japan will be adjusted by the end of 2025, possibly requiring an international card (Mastercard/Cirrus). The usability of Taiwanese bank cards will decrease. Plan ahead and avoid last-minute withdrawals before your trip.

Suitable for? Busy professionals with tight schedules, or those who suddenly find insufficient funds at the airport.

Cost comparison table for the 4 methods

Assuming you exchange NT$50,000 into yen, here are estimated actual costs (based on December 2025 data):

Conclusion: If you have time to plan, “online pre-order + airport pickup” offers the best value. For urgent situations, ATMs are second best. Counter cash exchange is only for unavoidable cases.

Is now a good time to exchange yen?

In early 2025, NT$ to yen was about 4.46; now in December, it’s risen to 4.85, appreciating by 8.7%. This appreciation alone can increase your cash value—if you don’t exchange yen, the same NT$ in a bank deposit yields lower returns.

Exchange rate trend analysis: The Bank of Japan Governor Ueda Kazuo has recently adopted hawkish comments, with market expectations of a rate hike to 0.75% at the December 19 meeting (a 30-year high). Japanese bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from 160 to 154.58 this year, and short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest it could go below 150—meaning the yen still has room to appreciate.

Investment perspective: If hedging Taiwan stocks, yen is indeed worth holding. But beware of the risk of closing arbitrage positions; if global risk sentiment improves, arbitrage funds will buy back yen, causing short-term volatility of 2-5%. It’s better to buy in installments rather than all at once.

H2 2025 data: We observe a 25% increase in yen exchange demand in Taiwan, mainly driven by tourism recovery and asset allocation needs. This reflects growing market confidence in the yen.

How to make your yen appreciate after exchange?

Once you’ve exchanged yen, don’t just leave it idle. Here are four options to keep your funds working:

Yen fixed deposit: The safest choice. Open a foreign currency account at E.SUN or Taiwan Bank, deposit yen online, with a minimum of 10,000 yen, annual interest 1.5-1.8%. It’s a low-risk way to lock in extra returns.

Yen insurance policy: Medium-term holding. Cathay or Fubon’s yen savings insurance offers guaranteed interest rates of 2-3%, suitable for forced savings plus interest.

Yen ETFs: Growth-oriented. Yuanta 00675U tracks the yen index, with a management fee of only 0.4%. You can buy fractional shares via broker apps for long-term appreciation.

Forex trading: Advanced players. Use platforms like Mitrade to trade USD/JPY or EUR/JPY directly, with long and short options, 24/7 trading, and small capital. Good for capturing volatility, but riskier.

Multi-currency allocation: As you get used to yen operations, consider other currencies like RMB or USD. Many banks offer RMB to NT$ exchange services, and a complete multi-currency exchange system is established, allowing flexible switching based on exchange rate movements.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate is the bank’s buy/sell rate for physical cash (notes and coins), usually worse; spot rate is for electronic transfers, closer to international market prices, 1-2% better.

Q: How much yen can NT$10,000 buy?
Using Taiwan Bank’s cash selling rate 4.85, NT$10,000 ≈ 48,500 yen. Using spot rate (~4.87), ≈ 48,700 yen. The difference is small but adds up over time.

Q: What to bring for counter exchange?
ID + passport (or residence permit). If pre-booked online, also bring transaction notice. Under 20, need guardian. Exchanging over NT$100,000 may require source of funds declaration.

Q: Are foreign currency ATMs limited?
Yes. CTBC’s daily limit is NT$150,000 equivalent; E.SUN’s own ATMs up to NT$150,000; each bank’s rules differ. Check their websites before withdrawal. After 2025, limits may drop to NT$100,000-150,000 per day, so consider splitting or using your own bank card to avoid cross-bank fees.

Final advice

Yen is no longer just pocket money for travel; it also functions as a hedge and investment asset. Whether for next year’s trip or hedging Taiwan stock volatility, the core strategy is two words: phased and appreciation.

Phased exchange averages costs and avoids high rates; after exchanging, move funds into fixed deposits or ETFs to keep your idle money growing, rather than letting it depreciate in your account. Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually explore more advanced investment tools.

This way, you not only enjoy more cost-effective travel but also add a layer of protection amid global market fluctuations.