4 Ways to Buy Yen: Which Is the Cheapest? A Must-Read Guide for 2025

The NT dollar to Japanese Yen exchange rate has reached 4.85, and the number of people wanting to buy Yen is increasing. But don’t rush to the bank just yet, because choosing the wrong exchange channel can cost you several thousand NT dollars in exchange rate differences. We have summarized the latest four ways to buy Yen, with actual numbers to show you which one is truly the most cost-effective.

Things to Know Before Buying Yen: Why Pay Attention to the Exchange Rate?

When it comes to buying Yen, many think it’s only necessary when traveling abroad. In fact, the Yen has long surpassed the role of a “travel currency.”

In daily use, whether shopping in Tokyo, skiing in Hokkaido, or purchasing Japanese goods through proxy, cash transactions still dominate. From an investment perspective, the Yen is one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc). When global markets are turbulent, funds flow into Yen for safety. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a single week, while the stock market fell 10% in the same period, demonstrating its safe-haven value.

For Taiwanese, buying Yen is not just for entertainment; it can also hedge your assets against the pressure of NT dollar depreciation.

4 Ways to Buy Yen Compared: Cost Analysis

Many believe that buying Yen only requires going to the bank, but in reality, choosing different channels can result in cost differences of over ###1,500 (based on NT$50,000).

Method 1: Bank or airport counter exchange (most traditional but most expensive)

Bring NT dollar cash directly to a bank branch or airport counter to buy Yen cash notes. This is the most common method. However, it also incurs the highest cost because banks use the “cash selling rate” (about 1-2% worse than the spot rate).

For example, as of December 10, 2025, Taiwan Bank’s rate is 0.2060 NT$ per Yen (meaning NT$1 exchanges for 4.85 Yen). Some banks also charge a counter handling fee, ranging from free to NT$200 per transaction.

Buying NT$50,000 this way could result in a loss of about NT$1,500-2,000.

Advantages: Safe, full denominations, staff assistance
Disadvantages: Worst exchange rate, limited business hours, possible handling fees
Suitable for: Urgent airport needs, unfamiliar with online procedures

Method 2: Online purchase + withdrawal at counter or ATM (mid-tier option)

Use bank app or online banking to convert NT$ into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better). If cash is needed, go to the counter or foreign currency ATM to withdraw, but this incurs a currency exchange fee (from NT$100).

This method is suitable for those who want to observe exchange rate trends and buy in batches, e.g., when NT$ to Yen drops below 4.80.

Buying NT$50,000 could result in a loss of NT$500-1,000.

Advantages: 24-hour operation, better exchange rates, averaging costs over time
Disadvantages: Need a foreign currency account, withdrawal fees apply
Suitable for: Forex experienced, long-term Yen holders

Method 3: Online currency exchange + airport pickup (most recommended)

No need for a foreign currency account. Simply fill in the currency, amount, pickup branch, and date on the bank’s official website. After completing, bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” online currency exchange has no handling fee, with about 0.5% better rates.

The biggest advantage is the ability to reserve airport branch pickup. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, very convenient.

Buying NT$50,000 could result in a loss of NT$300-800.

Advantages: Better exchange rates, often no handling fee, airport pickup option
Disadvantages: Need prior reservation (1-3 days), branch fixed, cannot change
Suitable for: Planned travelers, those wanting to pick up cash at the airport before departure

Method 4: Foreign currency ATM instant withdrawal (most convenient but fewer locations)

Use a chip-enabled financial card to withdraw Yen cash at foreign currency ATMs, operational 24/7. Fubon Bank’s foreign currency ATMs allow NT$ account holders to withdraw Yen, with a daily limit of NT$150,000, no exchange fee, only a NT$5 interbank fee.

Buying NT$50,000 could result in a loss of NT$800-1,200.

Advantages: 24/7 instant withdrawal, high flexibility, low interbank fee
Disadvantages: Limited locations (~200 nationwide), cash may run out during peak times, fixed denominations
Suitable for: Last-minute needs, no time to visit the bank

Summary Table of 4 Ways to Buy Yen

Is Now a Good Time to Buy Yen? Market Timing Analysis

As of December 10, 2025, the NT dollar to Yen rate is about 4.85, meaning NT$1 exchanges for 4.85 Yen. Compared to the beginning of the year at 4.46, it has appreciated about 8.7%, making the exchange gain quite substantial for investors.

But is “Now a good time to buy Yen”? The answer is: Yes, but buy in batches.

The Yen is currently experiencing significant fluctuations. Recently, Bank of Japan Governor Ueda’s hawkish comments pushed market expectations for rate hikes to 80%, with a scheduled increase of 0.25 basis points to 0.75% at the December 19 meeting (a 30-year high). Japanese government bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now.

For investment purposes, Yen as a major safe-haven currency is suitable for hedging against Taiwan stock market volatility. However, short-term risks include arbitrage unwinding, which could cause 2-5% fluctuations. It is recommended to buy Yen in batches to avoid converting all at once.

Next Steps After Buying Yen

If you’ve already purchased Yen, don’t let your money sit idle without earning interest. Consider these four investment options:

Yen fixed deposit: The most stable, open at E.SUN/Taiwan Bank with foreign currency accounts, starting from 10,000 Yen, annual interest rate 1.5-1.8%.

Yen insurance policy: Medium-term holding, savings insurance with guaranteed interest rates of 2-3%.

Yen ETFs: Growth-oriented options like Yuanta 00675U tracking Yen index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging.

Yen forex trading: Direct trading of currency pairs like USD/JPY on forex platforms, suitable for swing trading.

While Yen has hedging properties, it still faces two-way volatility. For investment, it’s recommended to consider Yen ETFs to diversify risk. For short-term fluctuations, forex trading USD/JPY is an option.

Common Questions About Buying Yen

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

Cash rate applies to physical cash (bills/coins), with the advantage of immediate delivery but usually 1-2% worse than the spot rate. Spot rate is the foreign exchange market rate for settlement within two business days, used for electronic transfers and foreign currency accounts, offering better rates but requiring T+2 settlement.

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

Using the exchange rate formula: Yen amount = NT$ amount × current rate. As of December 10, 2025, Taiwan Bank’s cash selling rate is 4.85, so NT$10,000 can buy about 48,500 Yen. Using the spot selling rate (~4.87), it’s about 48,700 Yen.

Q. What ID do I need to buy Yen at the bank?

For counter purchases, bring ID + passport (foreigners need passport + residence permit). If pre-ordered online, also bring transaction notification. Under 20 requires a parent’s accompaniment; purchases over NT$100,000 may require source of funds declaration.

Q. Is there a limit for buying Yen via Taiwan foreign currency ATMs?

Post-2025 regulations, most banks set daily limits of NT$100,000-150,000. It’s advisable to split purchases or use your bank card to avoid cross-bank fees. During peak times (like airports), cash may run out quickly, so plan ahead.

Conclusion

Buying Yen is no longer just about travel pocket money but also a strategic asset for hedging and investment. Whether planning a trip to Japan next year or seeking to hedge against NT dollar depreciation by moving into Yen, following the principles of “buy in batches + have an allocation after purchase” can minimize costs and maximize returns.

We recommend beginners start with “online currency exchange + airport pickup” or “foreign currency ATM,” then transfer Yen into fixed deposits or ETFs based on needs. This way, you can enjoy more cost-effective travel and add an extra layer of asset protection during global market turbulence.