Japanese Yen Settlement Guide: Which Option to Choose for a Budget of 50,000 to 200,000?

The NT$ to JPY exchange rate has reached 4.85, prompting many to consider exchanging for Japanese yen. But do you know? Exchanging 50,000 NT$ via in-person cash exchange and online remittance can have a cost difference of over ###1,000. We’ve compiled the four most common yen settlement channels in Taiwan, calculated with the latest rates, to show you how to save unnecessary expenses.

Why exchange for yen now?

Beyond travel and daily needs, another consideration

Travel to Japan is booming, but reasons for exchanging yen go beyond just going abroad. Over 40% of merchants in Japan still only accept cash, and purchasing agents, studying abroad, and part-time work often require yen; more importantly, the yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), serving as a hedge against Taiwan stock market risks for Taiwanese investors.

Financial logic of safe-haven assets

Japan’s economy is stable, with relatively low debt. During market turbulence, funds flow into the yen as a safe haven—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while Taiwan stocks fell 10%. Additionally, Japan’s ultra-low interest rate policy (0.5%) makes the yen a “funding currency,” where arbitrage traders borrow yen at low interest to buy higher-yield USD (USD/JPY interest rate gap of 4.0%), influencing short-term exchange rate fluctuations.

This year, the NT$ has depreciated 8.7%, making it advantageous to enter the yen market. However, short-term fluctuations of 2-5% still exist; a phased approach is more prudent.

Four options for yen settlement in Taiwan

Option 1: Traditional in-person at bank or airport counter, safest but most costly

Carry NT$ cash directly to a bank or airport counter to exchange for yen cash. The advantage is immediate receipt and full denominations (1,000, 5,000, 10,000 yen). The downside is using the “cash selling rate,” which is 1-2% worse than the spot rate, plus some banks’ handling fees. Exchanging 50,000 NT$ costs about ###1,500-2,000.

For example, Taiwan Bank’s cash selling rate in December 2025 is about 0.2060 NT$/JPY, with E.SUN Bank charging a 100 NT$ fee, increasing overall costs. Only recommended for urgent airport needs or small, temporary exchanges for elders.

Suitable for: Travelers unfamiliar with online operations needing small emergency exchanges

Option 2: Online remittance with airport pickup, most cost-effective and convenient

No foreign currency account needed. Simply fill in amount, currency, designated branch, and date via bank’s website or app. After remittance, bring ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online remittance is fee-free (pay with TaiwanPay, only 10 NT$), with about 0.5% better rates, costing only 300-800 NT$.

The biggest advantage is booking a pickup at the airport branch—Taoyuan Airport has 14 Taiwan Bank locations, 2 of which are open 24 hours. Complete the exchange the day before departure, and pick up cash directly on the day—no need to visit another bank. The downside is needing to book at least 1-3 days in advance; same-day branch change is not possible.

Suitable for: Travelers with a planned schedule, having 1-3 days buffer before departure

Option 3: Foreign currency account + online exchange, averaging costs over multiple batches

Open a foreign currency account first, transfer NT$ to JPY via bank app, using “spot selling rate” (about 1% better than cash rate). If cash is needed, withdraw at counters or foreign currency ATMs, but will incur exchange spread fees (starting around 100 NT$). Total cost is about 500-1,000 NT$.

Advantages include phased operations—monitor exchange rates and buy when low (e.g., NT$ to JPY below 4.80), averaging costs. After withdrawal, yen can be directly transferred into yen fixed deposits (current annual interest 1.5-1.8%) or purchased as yen ETFs (like Yuanta 00675U), turning idle funds into cash flow.

Suitable for: Investors with forex experience planning mid-term holdings of yen

Option 4: Foreign currency ATM withdrawal, fastest but limited cash supply

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash. Supports 24-hour, interbank withdrawals with only 5 NT$ fee, directly debited from NT$ account without needing a foreign currency account. Cost is about 800-1,200 NT$.

Limitations include limited locations (about 200 nationwide), only major currencies supported, fixed denominations (1,000, 5,000, 10,000 yen). During peak times (year-end, airports), cash may run out. Cathay United Bank’s foreign currency ATM has a daily withdrawal limit of 150,000 NT$, so don’t wait until the last minute to withdraw to avoid no cash available.

Suitable for: Urgent, last-minute needs, no time for counter visits, night emergencies

Quick comparison table: Actual costs of currency exchange

Based on exchanging 50,000 NT$, the cost differences are clear:

Using 50,000 NT$ with online remittance and cash in person can save about 1,200 NT$, equivalent to a high-end Japanese meal.

Is now a good time to exchange? Phased approach is key

Currently, NT$ to JPY is around 4.85, appreciating 8.7% since the start of the year. The Bank of Japan’s Governor Ueda Kazuo recently made hawkish comments, pushing up rate hike expectations to 80%. The December 19 meeting is expected to raise rates to 0.75% (a 30-year high), with Japanese bond yields hitting 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.

In the short term, the yen is supported by rate hikes but faces risks of global arbitrage unwinding, possibly fluctuating 2-5%. Medium to long-term, it’s expected to stay below 150. Therefore:

Yes, now is a good time to exchange, but don’t convert all at once. It’s recommended to buy in 3-4 batches, exchanging part each month. This spreads out risk and allows more yen at lower rates. For a moderate budget of 50,000 to 200,000 NT$, a “hybrid approach” of online remittance plus ATM withdrawal is the smartest.

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

Getting yen doesn’t mean the end—it’s the start of investment. Here are four options suitable for small-scale beginners:

1. Yen fixed deposit — Stable, open at banks like Yuanta or Taiwan Bank, starting from 10,000 yen, with 1.5-1.8% annual interest, risk-free and earning interest.

2. Yen insurance policy — Medium-term holding, Cathay or Fubon life savings insurance, with guaranteed 2-3% interest, suitable for 3-5 year plans.

3. Yen ETFs (00675U, 00703) — Growth-oriented, tracking yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging.

4. Forex trading USD/JPY — Direct trading of USD/JPY, both long and short, 24-hour trading, suitable for experienced swing traders.

While yen is a safe-haven, it also fluctuates bidirectionally. For pure investment, yen ETFs with a 0.4% annual management fee are less risky than forex trading. For short-term rate capturing, real-time signals and stop-loss/take-profit tools on forex platforms are more suitable.

FAQs

Q: How much is the difference between cash rate and spot rate?

Cash rate is used for physical cash exchange, about 1-2% worse than spot. Spot rate is used for electronic transfers (T+2 settlement), closer to international market prices. Simply put, exchanging via account is cheaper than cash.

Q: How much yen can 10,000 NT$ buy?

Using cash rate (~0.2060 NT$/JPY), 10,000 NT$ ≈ 48,500 yen; with spot rate (~0.2050), about 48,700 yen. The difference is only 200 yen. The exchange method affects the amount you get.

Q: What do I need to bring for in-person exchange?

Taiwanese: ID + passport; foreigners: passport + residence permit. If booked online, also bring transaction notification. Under 20 needs parental consent; large exchanges over 100,000 NT$ may require source of funds declaration.

Q: How much can I withdraw daily at foreign currency ATMs?

From 2025, rules vary by bank. CTBC, Taishin: NT$120,000-150,000/day; E.SUN: NT$50,000 per transaction, NT$150,000 per day. Use your own bank card to avoid cross-bank fees. During peak times, cash may run out—plan accordingly.

Conclusion

Yen is no longer just for travel pocket money but also a hedge and small investment asset. Whether traveling, investing, or hedging Taiwan stocks, mastering “phased exchange + post-exchange allocation” can minimize costs.

Beginners can start with the simplest “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then later transfer yen into fixed deposits or ETFs. This way, you not only save on travel costs but also add a layer of asset protection during global market turbulence.