2025 Yen Exchange Guide: 4 Major Strategies showdown, Save the Most with Foreign Currency ATMs

Taiwan dollar to Japanese yen surged to the 4.85 threshold, and many people want to exchange for yen. But do you know? Just choosing the wrong currency exchange method could cost you an extra NT$1,500 on NT$50,000. This article will reveal all the latest and most practical currency exchange tips.

Why exchange for yen now?

The yen’s popularity is back in 2025. Not just travelers, but investors are also paying attention.

Travel and daily needs: Major attractions in Tokyo, Osaka, Hokkaido still mainly use cash transactions (credit card penetration is only 60%), plus demand for purchasing Japanese cosmetics, clothing, anime merchandise, etc., the demand for yen remains steady.

Financial investment perspective: The yen is one of the three major safe-haven currencies globally (along with USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, successfully offsetting a 10% stock market decline risk. For Taiwanese investors, allocating some yen assets can effectively buffer Taiwan stock market volatility.

More importantly, the Bank of Japan is about to raise interest rates. Governor Ueda Kazuo’s recent hawkish remarks pushed market expectations of rate hikes to 80%, with a projected increase of 0.25 bps to 0.75% on December 19 (a 30-year high), which is a strong boost for the yen’s long-term trend.

Practical comparison of 4 currency exchange methods

Many think they can only go to banks to exchange yen, but just comparing different banks and methods can save a significant amount of fees. We’ve calculated using actual rates, summarized into four schemes below.

Option 1: Traditional counter exchange—least cost-effective

Bring cash NT$ to a bank branch or airport counter to get yen cash on the spot. Simple operation, but using the “cash selling rate,” which is 1-2% worse than the spot rate.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/yen (equivalent to NT$1 = 4.85 yen). Some banks also charge NT$100-200 handling fee, so exchanging NT$50,000 will lose NT$1,500-2,000.

Bank cash exchange rate comparison table (2025/12/10)

Suitable for: Urgent airport needs, elderly unfamiliar with online operations.

Option 2: Online exchange with in-person withdrawal—mid-tier choice

Use bank app or online banking to convert NT$ into yen and deposit into a foreign currency account, with a more favorable “spot sell rate” (about 1% better than cash rate). If you want cash, withdraw in person or via foreign currency ATM, but there will be additional withdrawal fees (minimum NT$100).

This method suits investors with some forex experience who want to buy in installments. E.SUN Bank and Taiwan Bank offer this service, with an annual interest rate of about 1.5-1.8%, allowing you to exchange and deposit simultaneously.

Cost estimate: NT$50,000 costs about NT$500-1,000 in losses.

Suitable for: Readers with forex experience planning small deposits or investments.

Option 3: Online currency purchase reservation—best pre-departure plan

No need for a foreign currency account. Fill in currency, amount, and pickup branch on the bank’s website. After transferring funds, bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates. The best part is you can reserve to pick up at 14 Taiwan Bank locations at Taoyuan Airport (including 2 open 24 hours).

Ideal for planned travelers. Requires 1-3 days reservation in advance, saving the hassle of last-minute queues.

Cost estimate: NT$50,000 costs about NT$300-800 in losses.

Suitable for: Business travelers planning trips abroad who want to pick up cash at the airport.

Option 4: Foreign currency ATM withdrawal—most flexible 24/7

Use a chip-enabled financial card to withdraw yen cash at foreign currency ATMs. The biggest advantage is 24/7 availability, with only NT$5 fee for interbank withdrawals, and no currency exchange fee. E.SUN Bank’s foreign currency ATMs allow NT$15,000 equivalent per day from a NT$ account.

However, there are only about 200 such ATMs nationwide, with fixed denominations (1,000/5,000/10,000 yen). During peak times (like airports), cash may run out.

Cost estimate: NT$50,000 costs about NT$800-1,200 in losses.

Suitable for: People who don’t have time to visit banks, need urgent cash, or prioritize flexibility.

Summary of 4 major exchange options

Beginner guide: For budgets NT$50,000-200,000, a mix of “online currency purchase + airport withdrawal” or “foreign currency ATM” offers the best savings.

Is it a good time to exchange now? Market timing analysis

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

Short-term trend: Yen may fluctuate between 154-156. The US rate cut cycle supports this, but with the BOJ about to raise rates, short-term tests around 155 are likely. It’s recommended to buy in installments and avoid full conversion at once.

Medium to long-term outlook: USD/JPY is expected below 150, with the yen generally strengthening. For investment purposes, yen as a safe-haven currency is suitable for hedging Taiwan stocks, but arbitrage closing may cause 2-5% volatility.

After exchanging yen, what’s next? Don’t let your money sit idle

After exchanging yen, don’t let it sit idle without interest. Based on your risk appetite, consider these 4 options:

Conservative—Yen fixed deposit: Starting from NT$10,000, open an online foreign currency account with E.SUN or Taiwan Bank, with an annual interest rate of 1.5-1.8%. Suitable for conservative investors.

Mid-term—Yen insurance policy: Cathay or Fubon savings insurance with guaranteed 2-3% interest, combining protection and returns.

Growth—Yen ETFs: Yuanta 00675U, 00703 tracking yen indices, can be bought as fractional shares via broker apps for dollar-cost averaging, with an annual management fee of 0.4%.

Volatility—Forex trading: Directly trade USD/JPY or EUR/JPY, with 24-hour two-way trading, allowing both long and short positions. Forex platforms like Mitrade offer zero commissions, low spreads, and tools like stop-loss, take-profit, and trailing stops.

While yen is a safe-haven, it also involves two-way risks. Rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts could push prices down. Beginners should start with fixed deposits or ETFs, gaining experience before trying swing trading.

Common forex Q&A

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

Cash rate is for physical cash (bills/coins) buying and selling. It’s convenient for immediate cash delivery but 1-2% worse than the spot rate.

Spot rate is the T+2 settlement rate in the forex market, mainly used for electronic transfers and non-cash settlement. It’s more favorable and closer to international market prices but takes 2 business days to settle.

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

Use the formula “Yen amount = NT$ amount × current rate.” For example, Taiwan Bank’s cash sell rate on 2025/12/10 is 0.2060 NT$/yen, so NT$10,000 can get about 48,500 yen. Using the spot rate (~0.2051), it’s about 48,700 yen, a difference of 200 yen (~NT$40).

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

ID + passport (for locals) or passport + residence permit (for foreigners). If pre-booked online, also bring transaction notification. Under 20 needs a parent; large amounts (over NT$100,000) may require source of funds declaration.

Q: Are there limits on foreign currency ATM withdrawals?

After October 2025, many banks adjusted rules. CTBC allows NT$120,000/day equivalent; Taishin NT$150,000/day; E.SUN NT$150,000/day (including card spending). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees. During peak times (like airports), cash may run out, so plan ahead for safety.

Summary: Exchanging yen has become a basic financial skill

Yen has evolved from “travel pocket money” to an asset with hedging and investment value. Whether for next year’s travel or hedging against NT$ depreciation, as long as you follow the two principles of “batch exchange + don’t leave it idle,” you can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online currency purchase + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or small swing trades based on needs. Not only will this make traveling more cost-effective, but it also adds a layer of protection during global market fluctuations.