Complete Guide to Yen Exchange: Breakdown of 4 Methods and the Optimal Solution

December 10, 2025, the Taiwanese dollar has appreciated to the 4.85 mark against the Japanese yen, with travel demand and yen investment enthusiasm rising in tandem. But do you know? Choosing different currency exchange channels can result in differences in exchange rates that may cost you several thousand NT dollars more. This article will break down the costs of four methods to exchange for Japanese yen, helping you find the most suitable currency exchange plan.

Why is it worth paying attention to exchanging yen now?

The yen holds a special position in the international financial market, not just as a “travel currency,” but also as an investment-grade asset.

Travel and Living Needs

The number of travelers to Japan continues to increase, with popular destinations like Tokyo, Osaka, and Hokkaido still mainly using cash transactions (credit card penetration less than 60%). Additionally, purchasing Japanese cosmetics, clothing, anime merchandise, or using proxy shopping services all require direct settlement in yen. Those planning to study abroad or work holiday in Japan should also plan their currency exchange strategies in advance to avoid increased costs due to sudden exchange rate fluctuations.

Financial Investment Value

Hedging Asset Status: The yen is one of the three major safe-haven currencies globally, alongside the US dollar and Swiss franc. Japan’s stable economy and low debt characteristics make the yen a safe harbor during market risk surges. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, effectively buffering a 10% decline in the stock market. For Taiwanese investors, allocating yen can hedge against Taiwan stock market risks.

Interest Rate Arbitrage Opportunities: The Bank of Japan has maintained ultra-low interest rates (currently 0.5%) for a long time, with a 4.0% gap compared to the US interest rate. This interest differential attracts arbitrage traders to borrow yen to invest in US dollar assets, but they should be aware of 2-5% volatility risk when closing positions.

Yen Exchange Rate Trends and Timing

As of December 10, 2025, the NT dollar to yen exchange rate is about 4.85, up approximately 8.7% from 4.46 at the beginning of the year, making the exchange gains quite substantial. In the second half of the year, Taiwan’s demand for yen exchange increased by 25%, mainly driven by travel recovery and asset hedging needs.

Recently, the Bank of Japan’s hawkish stance has strengthened expectations of interest rate hikes (expected to raise to 0.75% at the December 19 meeting, a 30-year high), with Japanese bond yields reaching 1.93%. The USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with a short-term retest of 155 possible, but medium to long-term forecasts tend toward below 150.

Recommended Strategy: Divide your exchange into multiple batches to diversify risk and avoid converting all at once.

Comparison of Four Channels to Exchange for Yen in Taiwan

First: Bank Counter Cash Exchange

Carry NT dollars cash to a bank branch or airport counter to obtain yen cash. This method uses the “cash selling rate” (which is 1-2% worse than the spot rate), resulting in higher costs.

Taiwan Bank Reference Rate (2025/12/10): Cash selling rate about 0.2060 NT$/yen (meaning 1 NT$ ≈ 4.85 yen). Some banks charge an additional handling fee of NT$100-200.

Advantages: Simple operation, full denominations (1,000/5,000/10,000 yen), assistance from staff.
Disadvantages: Worse exchange rate, limited by bank hours (weekday 9:00-15:30), additional handling fees.
Suitable for: Travelers unfamiliar with online operations or needing small amounts of cash temporarily.

Second: Online Currency Exchange + Counter Pickup

Complete the exchange via bank app or website using “spot selling rate” (about 1% better than cash rate), then pick up cash at designated branches or airports. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with TaiwanPay for NT$10), with about 0.5% better rate.

This method is especially suitable for travelers planning to go abroad, allowing reservations at 14 Taiwan Bank outlets at Taoyuan Airport (including 2 24-hour branches).

Advantages: Better rates, often no handling fee, can specify airport pickup, 24/7 online operation.
Disadvantages: Need to make reservations 1-3 days in advance, pickup limited by bank hours, branches cannot be changed.
Suitable for: Planned travelers who want to withdraw cash directly at the airport.

Third: Online Currency Exchange + Foreign Currency Account Holding

No cash needed; transfer NT dollars to a foreign currency account via online banking, using “spot selling rate.” If later withdrawing cash, additional handling fees apply (interbank NT$5-100).

Suitable for investors monitoring exchange rates and making phased entries. E.SUN Bank’s foreign currency account requires a minimum deposit of 10,000 yen, with an annual interest rate of about 1.5-1.8%, serving as a stable allocation.

Advantages: 24-hour operation, averaging costs over multiple batches, better rates, can set yen fixed deposits.
Disadvantages: Need to open a foreign currency account, withdrawal incurs additional fees.
Suitable for: Readers with forex investment experience or frequently using foreign currency accounts.

Fourth: Foreign Currency ATM Self-Service Withdrawal

Use a chip-enabled financial card at a foreign currency ATM to directly withdraw yen cash, supporting 24-hour operation. Deducts only NT$5 cross-bank fee from your NT dollar account, with no exchange handling fee.

Fubon Bank’s foreign currency ATM daily limit for yen is NT$150,000. Different banks have slightly different limits, as below:

Note that foreign currency ATM cash denominations are fixed (1,000/5,000/10,000 yen), and during peak times (e.g., airports), cash shortages may occur.

Advantages: Instant withdrawal, high flexibility, low cross-bank fees, available 24/7.
Disadvantages: Limited locations (about 200 nationwide), fixed denominations, possible cash shortages at peak times.
Suitable for: Readers with no time for counter visits or needing urgent cash.

Cost and Benefit Analysis of the Four Methods

Using NT$50,000 as an example, the estimated costs and suitable scenarios are:

Conclusion: For budgets of NT$50,000-200,000, it’s recommended to combine “online exchange + airport pickup” or “foreign currency ATM withdrawal” to minimize costs.

Frequently Asked Questions

Q: What is the difference between cash exchange rate and spot rate?

Cash exchange rate is the buy/sell rate offered by banks for physical cash, paid on the spot but more costly; spot rate is the market rate settled within T+2 for electronic transfers, more favorable but requires waiting for settlement.

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

Based on Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, NT$10,000 ≈ 48,500 yen; using the spot rate of 4.87, about 48,700 yen.

Q: What do I need to bring for counter exchange?

Taiwanese nationals: ID + passport; foreigners: passport + residence permit. If booked online, bring transaction notification. Under 20 years old need parental accompaniment; large amounts (over NT$100,000) may require source of funds declaration.

Q: Is there a limit for foreign currency ATM withdrawals?

Post-2025 regulations, most banks have adjusted to daily limits of NT$100,000-150,000 (including cross-bank). It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees.

Asset Allocation After Exchanging Yen

After acquiring yen, funds should not remain idle without interest. Common appreciation options include:

Yen Fixed Deposit: E.SUN, Taiwan Bank offer foreign currency accounts with minimum 10,000 yen deposits, annual interest 1.5-1.8%, very low risk.

Yen Insurance Policies: Cathay, Fubon life insurance savings policies with guaranteed interest rates of 2-3%, suitable for medium-term holding.

Yen ETFs: Yuanta 00675U, 00703 tracking yen indices, can be bought as fractional shares via brokerage apps, suitable for dollar-cost averaging and asset growth.

Forex Swing Trading: Currency pairs like USD/JPY, EUR/JPY can be traded on forex platforms, offering long/short positions, 24-hour trading, and low capital requirements.

While yen has hedging attributes, it also carries two-way volatility risks. Rate hikes by the Bank of Japan are positive, but global arbitrage unwinding or geopolitical conflicts may cause retracements. Investors should choose appropriate allocations based on risk tolerance.

Summary and Recommendations

The yen has transcended its role as a “pocket money” for travel, becoming an asset with hedging and investment value.

Whether planning Japan travel next year or diversifying assets, mastering the principles of “phased exchange and value-added after exchange” can minimize costs and maximize returns. Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM withdrawal,” then, based on needs, transfer yen into fixed deposits, ETFs, or swing trading, enjoying both travel convenience and added asset protection amid global market fluctuations.