Japanese Yen Exchange Guide: The Best Strategy for TWD to JPY at 4.85 in 2025

The NT$ to Japanese Yen exchange rate has risen to around 4.85, prompting many to plan trips to Japan or allocate foreign currency. However, the cost of currency exchange is often overlooked—simply choosing the wrong channel can cost you thousands of dollars more. This article evaluates four major currency exchange options to help you find the most suitable method for your needs.

Why is it worth exchanging for Yen? A comprehensive analysis of investment and lifestyle aspects

In Taiwan’s foreign currency market, the Japanese Yen has long held a significant position, not only for travel and shopping but also for financial hedging potential.

Daily needs: traveling abroad, purchasing via代理購, studying and working abroad

Many discover during trips to Japan that shopping districts in Tokyo and Osaka still predominantly use cash (credit card penetration is only about 60%), making it necessary to exchange cash in advance. Additionally, those buying Japanese cosmetics, clothing, or anime merchandise often need to make international transfers directly in Yen. For those planning long-term residence or working holidays, exchanging currency early and locking in the rate can effectively reduce additional costs caused by market fluctuations.

Financial perspective: stable status of the world’s three major safe-haven currencies

The Yen, along with the US Dollar and Swiss Franc, is regarded as an international safe-haven currency due to Japan’s solid economic fundamentals and manageable government debt. During market turbulence (such as the Russia-Ukraine conflict in 2022), funds tend to flow into Yen, which appreciated by 8% in a single week during that event, effectively buffering stock market declines. For Taiwanese investors, appropriately allocating Yen can hedge against Taiwan stock risks.

Furthermore, the Bank of Japan has maintained an ultra-low interest rate policy (recently raised to 0.75%), making Yen a funding currency for global arbitrage trades. Investors often borrow Yen at low interest, convert to USD for high-yield investments, with the US-Japan interest rate differential around 4.0%. When risks increase, arbitrage positions are closed, further boosting Yen demand.

Market status: Is it worth exchanging Yen now?

As of early December 2025, the NT$ to Yen rate is about 4.85, compared to 4.46 at the start of the year, Yen has appreciated approximately 8.7%. This means lower costs for travel and potentially attractive investment returns, especially under the pressure of NT$ depreciation. Statistics show that Taiwan’s currency exchange demand grew by 25% in the second half of the year, driven mainly by travel recovery and increased hedging.

To exchange or not? The answer is: You can exchange, but should do so in installments. The Yen rate is currently volatile, with the Fed entering a rate cut cycle that may support the Yen. Meanwhile, expectations of BOJ rate hikes are rising, with Governor Ueda recent hawkish stance pushing market expectations for a rate hike to 0.75% (a 30-year high), and Japanese government bond yields reaching 1.93%, a 17-year high.

USD/JPY has fallen from a high of 160 at the start of the year to around 154, with short-term fluctuations possibly reaching 155, but the medium to long-term trend is expected to fall below 150. As an investment hedge, Yen has clear safe-haven functions, but watch out for short-term volatility of 2-5% due to arbitrage unwinding. It is recommended to enter gradually and average the cost.

Practical comparison of four currency exchange methods

Many mistakenly think exchanging Yen only involves a single bank visit, but the rate differences can lead to significant cost variations. Below, each channel’s pros and cons are introduced:

Method 1: In-person cash exchange—most traditional but highest cost

Carry NT$ cash to a bank branch or airport counter to exchange for Yen cash. Banks use the “cash selling rate” (usually 1-2% worse than the spot rate), plus possible service fees, resulting in higher overall costs.

For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/Yen (roughly 4.85 Yen per NT$), with some banks charging fixed handling fees.

Advantages: Simple, safe, full denominations, staff assistance

Disadvantages: Less favorable rates, limited operating hours (09:00-15:30 weekdays), possible fees

Suitable for: Inexperienced with online operations, small urgent needs (e.g., at the airport)

Major bank in-person exchange cost table (Dec 2025 reference):

Method 2: Online currency exchange account—suitable for long-term holders

Via online banking or mobile app, convert NT$ into Yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash rate). To withdraw cash, you need to go in person or use foreign currency ATMs, which incurs additional exchange spread and handling fees (minimum around 100 NT$).

For example, after currency exchange via E.Sun app, withdrawing Yen cash incurs a fee based on the rate difference, starting at 100 NT$. This method suits those monitoring exchange rates and entering in batches at low points (e.g., when NT$/Yen drops below 4.80).

Advantages: 24/7 operation, ability to average costs, better rates, can combine with Yen fixed deposits (annual interest 1.5-1.8%) to increase returns

Disadvantages: Need to open a foreign currency account first, withdrawal fees, interbank transfer fees 5-100 NT$

Suitable for: Forex experienced, frequently managing foreign currency accounts, planning Yen deposits or investments

Method 3: Online currency exchange + airport pickup—best pre-trip booking

No need for a foreign currency account; fill in currency, amount, pickup branch, and date on the bank’s website, then transfer funds. Bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with reservation options at airport branches.

Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay only 10 NT$ via Taiwan Pay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, very convenient.

Advantages: Better rates, often no fees, can specify airport pickup, reservation ensures cash availability

Disadvantages: Need to book 1-3 days in advance, pickup limited by bank hours, branches cannot modify

Suitable for: Well-planned trips, advance arrangements, travelers wanting direct airport cash

Method 4: Foreign currency ATM withdrawal—24/7 flexible cash access

Use chip-enabled debit/credit cards at bank foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation and interbank use. Withdraw directly from NT$ account, with only a 5 NT$ interbank fee (much cheaper than in-person). Main currencies supported, with about 200 ATMs nationwide.

SinoPac Bank’s foreign currency ATMs allow NT$ account withdrawals of Yen up to 150,000 NT$ per day, with no exchange fee. Note: Japan ATM withdrawal services will be adjusted by end of 2025, requiring international cards (Mastercard/Cirrus).

Advantages: Instant withdrawal, high flexibility, low fees from NT$ accounts, minimal interbank charges

Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 Yen), cash may run out during peak times

Suitable for: Time-sensitive, no time for in-person, urgent needs

Latest ATM withdrawal limits (2025 update):

Cost comparison table for four methods

Based on a 50,000 NT$ exchange amount (Dec 2025 data):

Small amount (50k-200k) optimal strategy: Mix online exchange + ATM to minimize costs.

Global exchange rate overview: Yen, Euro, and NT$

Besides Yen, the exchange rates of NT$ against other major currencies are also worth noting. For example, 1 Euro is currently around 32-33 NT$, reflecting differences in global central bank policies. The Fed tends toward mild rate cuts, the ECB remains steady, while the BOJ actively raises rates, making USD and Yen relatively strong. For multi-currency investors, understanding these linkages helps optimize asset allocation.

After exchanging Yen: making idle funds work

Once you have Yen, if no immediate travel is planned, consider these value-added options:

1. Yen fixed deposit: Conservative choice, offered by many banks, starting from 10,000 Yen, with annual interest 1.5-1.8%

2. Yen insurance policies: Medium-term holding, Cathay/Fubon life offer savings insurance with guaranteed 2-3% interest

3. Yen ETFs (00675U, 00703): Growth-oriented, tracking Yen index, can buy fractional shares, suitable for regular investment

4. Forex trading: Swing trading on platforms, directly trading USD/JPY, EUR/JPY, etc., with 24-hour bidirectional trading

While Yen has hedging features, it also faces volatility. BOJ rate hikes support Yen, but global arbitrage unwinding or geopolitical tensions (Taiwan Strait, Middle East) may exert pressure. For pure investing, Yen ETFs (annual fee 0.4%) diversify risk. For swing or intraday traders, forex platforms with zero commissions, low spreads, and stop-loss/take-profit tools are effective for capturing rate movements.

Common Q&A quick answers

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

Cash rate is the rate banks offer for physical cash, delivered immediately and portable, but usually 1-2% worse than the spot rate. Spot rate is the international market price for settlement within two business days (T+2), used for electronic transfers and account transactions, offering better rates.

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

Using the cash selling rate of 4.85, 10,000 NT$ can buy about 48,500 Yen; with the spot rate of 4.87, about 48,700 Yen—difference of roughly 200 Yen (about 40 NT$).

Q: What documents are needed for in-person exchange?

Taiwanese need ID card + passport; foreigners need passport + residence permit. For online reservation pickup, bring transaction notice. Under 20 requires parental consent; large exchanges over 100,000 NT$ may require source of funds declaration.

Q: Are there withdrawal limits at foreign currency ATMs?

Banks set different limits; typically, own bank cards allow 100,000-150,000 NT$ per day; other banks depend on issuing bank. After 2025, many banks lowered limits to 100,000-150,000 NT$, so consider spreading withdrawals or using your own bank card to avoid cross-bank fees. During peak times (airports), cash may run out quickly, so plan ahead.

Final recommendations

Yen is no longer just for “travel pocket money” but also a tool for hedging and investment. Whether planning a trip to Japan next year or aiming to hedge against NT$ depreciation by converting funds into Yen, following the principles of “batch exchange + not sitting idle after exchange” can minimize costs and maximize returns.

For beginners, starting with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM” is recommended, then gradually moving into deposits, ETFs, or forex trading based on needs. This approach not only reduces travel costs but also helps build additional asset protection amid global market fluctuations.