Japanese Yen Exchange Guide: How to Save the Most on a Budget of 50,000 to 200,000?

In December 2025, the Taiwan dollar against the Japanese yen reached a level of 4.85, an 8.7% increase from the beginning of the year. More people are looking to exchange for yen, but do you know? Choosing the wrong method could cost you an extra 2,000 NT dollars. We tested the four major currency exchange channels in Taiwan to reveal the true costs.

Why is it worth exchanging for yen? Not just for travel

The yen ranks among the top three foreign currencies in Taiwan’s foreign exchange market, for two main reasons.

Travel and daily life Japanese merchants still primarily use cash (credit card penetration is only 60%), so shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa all require cash. Additionally, Japanese purchasing agents, anime merchandise, and direct purchases of cosmetics often need to be settled in yen. Those planning to study or work in Japan usually exchange currency in advance to lock in favorable rates.

Financial investment aspect The yen is one of the three major safe-haven currencies globally (the other two are USD and Swiss Franc). Japan’s economy is stable, and debt is manageable. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully buffering stock market declines. For Taiwanese investors, holding yen can hedge against fluctuations in the Taiwan stock market.

The Bank of Japan has maintained ultra-low interest rates (0.5%) for a long time, making the yen an arbitrage financing currency—investors borrow low-interest yen to invest in higher-yield USD (interest rate differential of 4%), then unwind positions and buy back yen when risks increase.

Latest in 2025: Testing the four major currency exchange channels

Many think they can only go to banks, but just the difference in exchange rates can save several cups of bubble tea. We analyze each method.

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

Bring NT dollars in cash to a bank or airport counter to receive yen cash on the spot. Simple to operate, but uses the “cash selling rate” (1-2% worse than the spot rate), resulting in higher costs.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/yen (meaning 1 NT$ = 4.85 yen). Some banks charge additional handling fees.

Pros: Safe and transparent, denominations available (1,000, 5,000, 10,000 yen), staff assistance on-site.
Cons: Less favorable rates, limited by bank hours (weekday 9:00-15:30), extra handling fees increase costs.
Suitable for: Small urgent needs, airport emergencies, those unfamiliar with online methods.

Bank fee comparison (2025/12/10)

Method 2: Online exchange, then pick up at counter (mid-tier)

Use bank app or online banking to transfer NT$ into a foreign currency account, converting at the “spot sell rate” (about 1% better than cash rate). If you want cash, pick it up at the counter or foreign currency ATM, incurring additional fees (around 100 NT$).

This method suits those observing exchange rates, allowing for staggered entry at low points (below 4.80). Many banks, including E.SUN and Taiwan Bank, offer this, with yen fixed deposit annual interest rates around 1.5-1.8%.

Pros: 24-hour operation, allows for phased entry to reduce costs, better exchange rates.
Cons: Need to open a foreign currency account first, withdrawal of cash incurs extra fees.
Suitable for: Experienced forex traders, long-term holders, those combining with deposit investments.

Method 3: Online reservation for currency exchange, then pick up at airport (best before travel)

No need for a foreign currency account. Fill in currency, amount, branch, and date on the bank’s website. After transfer, bring ID and notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with reservation options at Taoyuan Airport branches.

Taiwan Bank charges only 10 NT$ handling fee (paid via TaiwanPay), with a 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours.

Pros: Better exchange rates, often fee-free, quick airport pickup.
Cons: Need to book 1-3 days in advance, limited to business hours, branches cannot change reservations on the spot.
Suitable for: Planned travelers, those who want to prepare ahead.

Method 4: Foreign currency ATM withdrawal (most flexible)

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen directly. 24/7 operation, cross-bank withdrawal fee about 5 NT$, no exchange fee.

There are about 200 foreign currency ATMs nationwide, but denominations are fixed (1,000, 5,000, 10,000 yen). Cash may run out during peak times, so don’t wait until the last minute.

Pros: Most flexible, anytime, anywhere, low cross-bank fees.
Cons: Limited locations, fixed denominations, possible cash shortages during busy hours.
Suitable for: Those with no time to visit banks, urgent needs.

Cost comparison of four methods (using NT$50,000 as example)

Conclusion: For budgets between NT$50,000 and NT$200,000, combining “online exchange + airport pickup” or “online exchange + ATM withdrawal” offers the lowest costs.

Is it worthwhile to exchange yen now? Timing analysis

In December 2025, the NT$ against the yen is 4.85, up 8.7% from 4.46 at the start of the year. In the second half, demand for currency exchange in Taiwan grew by 25%, mainly due to travel recovery and hedging needs.

Short-term exchange rate outlook
Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% at the December 19 meeting (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%. USD/JPY has fallen from 160 to 154.58 since the start of the year, with a short-term rebound possibly to around 155, but medium to long-term forecasts suggest below 150.

Investment advice
The yen is a safe-haven tool suitable for hedging against Taiwan stocks, but short-term arbitrage unwinding risks exist, with volatility of 2-5%. It’s recommended to stagger entry rather than exchange all at once. Combining with yen fixed deposits (1.5-1.8% annual interest) or yen ETFs can further optimize returns.

Ways to increase value after exchanging yen

Don’t let your yen sit idle without interest—consider the following options:

Yen fixed deposit: Stable, starting from 10,000 yen, annual interest 1.5-1.8%, open via major banks’ foreign currency accounts.

Yen insurance policies: Medium-term, savings insurance from Cathay or Fubon, with guaranteed interest rates of 2-3%.

Yen ETFs: Growth-oriented, tracking yen indices, invest via brokerage apps with small amounts, diversifying risk.

Forex swing trading: Trade currency pairs like USD/JPY or EUR/JPY to capture short-term fluctuations. Advantages include two-way trading, 24-hour market, small capital entry.

The BOJ’s rate hikes favor the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may suppress it. For investment, yen ETFs can effectively diversify risk.

Common questions answered

Q. What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical bills/coins, with the advantage of immediate cash delivery but 1-2% worse than the spot rate plus handling fees. Spot rate is the foreign exchange market rate for T+2 settlement, used for electronic transfers and account transactions, offering better rates but requiring waiting.

Q. How much yen for NT$10,000?
Using Taiwan Bank’s December 2025 cash sell rate of about 4.85, NT$10,000 ≈ 48,500 yen. Using the spot sell rate of about 4.87, ≈ 48,700 yen, difference about 200 yen (NT$40).

Q. What to bring for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. If booked online, also bring transaction notification. Under 20 need parent accompaniment. For large amounts (over NT$100,000), may need to declare source of funds.

Q. Is there a daily limit for foreign currency ATM withdrawals?
Post-2025 regulations, most banks set limits around NT$100,000-150,000 equivalent per day. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees. During peak hours (like airports), cash may run out, so plan ahead.

Final advice

Yen is no longer just for travel “pocket money,” but also an asset class with hedging and investment value. Whether for next year’s trip or to hedge against NT$ depreciation, mastering “staggered exchange + post-exchange investment” can lower costs and maximize returns.

Beginners are recommended to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy cost-effective travel and add a layer of protection amid global market volatility.