Japanese Yen Exchange Guide: The 4 Smartest Ways to Exchange in 2025

The pressure of the NT dollar’s depreciation continues, and the yen’s appreciation has already begun. As of December 2025, the NT dollar to yen exchange rate has reached 4.85, an 8.7% appreciation since the beginning of the year. This is not just a matter for travelers—investors are also starting to pay attention to yen allocations.

Want to exchange for yen but don’t know where to start? Don’t worry, we break down all the methods available in the market to help you save unnecessary costs.

First, ask yourself: Why do I want to exchange for yen?

Travel and Consumption Scenarios

Shopping in Tokyo, skiing in Hokkaido, vacation in Okinawa—most Japanese merchants still rely on cash (credit card penetration is only 60%). Exchanging at the airport at the last minute often results in the worst rates. Additionally, purchasing agents and frequent online shoppers need to prepare yen in advance to avoid sudden exchange rate fluctuations.

Financial Allocation Perspective

This is the key—yen is one of the world’s three major safe-haven currencies (alongside 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 week, while the stock market fell 10%. For Taiwanese investors, exchanging for yen is essentially hedging Taiwan stock market volatility with yen.

Deeper still, the Bank of Japan’s recent hawkish rate hike expectations (Governor Ueda hinted at a December rate increase to 0.75%) combined with the US entering a rate cut cycle, has caused USD/JPY to fall from a high of 160 to around 154. The long-term bullish logic for the yen is gradually forming.

4 Practical Methods for Currency Exchange

Many think banks are the only option, but in reality, just the difference in exchange rates can save you several cups of bubble tea. Here’s a calculation based on actual rates.

Method 1: Traditional Counter Exchange (Most convenient but most expensive)

Go directly to a bank branch or airport counter to exchange NT dollars for yen cash. Sounds simple, but banks use the “cash selling rate,” which is 1-2% worse than the international market rate, plus possible handling fees.

For example, Taiwan Bank’s December 10 rate: cash selling rate is 1 yen = 0.2060 NT dollars (i.e., 1 NT dollar = 4.85 yen), while the international spot rate at the same time is about 4.87. A difference of 200 yen just disappears.

Plus, counter transactions require matching bank hours (weekday 9:00-15:30), and at airports, you may need to queue, making it inefficient.

Cost estimate: NT$50,000 sold at cash rate results in a loss of about NT$1,500-2,000.

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

Method 2: Online Banking Currency Conversion to Deposit Account (Balanced Approach)

Use the bank app to convert NT dollars into yen and deposit into a foreign currency account, enjoying the “spot selling rate” (about 1% better than cash selling rate). When you need cash, withdraw in person or via foreign currency ATM, paying only withdrawal fees (interbank NT$5-100).

Advantages include observing exchange rate trends and gradually entering at low points to average costs—for example, waiting for NT dollar to fall below 4.80 before buying. This method is most practical for those with foreign currency accounts, and after exchange, you can also invest in yen fixed deposits (currently 1.5-1.8% annual interest), letting your money grow while stored.

Cost estimate: NT$50,000 exchange plus withdrawal costs, loss about NT$500-1,000.

Suitable for: People experienced with foreign exchange and considering yen investments.

Method 3: Online Pre-Order Currency Exchange for Pick-up at Designated Branches (Favorite among Office Workers)

No need to open a foreign currency account—just fill in the amount, pick-up date, and branch on the bank’s website. Afterward, bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” service is especially convenient—about 0.5% exchange rate discount, often no handling fee (pay with TaiwanPay for NT$10).

The best part before traveling is that Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours, allowing pre-arranged airport pick-up with no hassle.

Cost estimate: NT$50,000 online currency exchange, loss only NT$300-800.

Suitable for: Well-planned travelers with confirmed travel dates.

Method 4: Foreign Currency ATM Instant Withdrawal (Emergency Savior)

Use a chip-enabled bank card to withdraw yen at foreign currency ATMs, available 24/7. Cross-bank fee is only NT$5 (much cheaper than counter). E.SUN Bank’s foreign currency ATMs deduct directly from NT dollar accounts to withdraw yen, with a daily limit of NT$150,000, no exchange fee.

Disadvantages include limited locations (about 200 nationwide) and fixed denominations of 1,000/5,000/10,000 yen. During peak times (like airports), cash may run out—don’t wait until the last minute to withdraw.

Cost estimate: NT$50,000 withdrawal via foreign currency ATM, loss about NT$800-1,200.

Suitable for: People with no time to visit banks or needing immediate cash.

Summary table of the 4 methods (December 2025 actual data)

Is it really worth exchanging for yen now?

Short answer: Yes, but do it in batches.

Long answer: The yen exchange rate is still quite volatile. The Bank of Japan’s imminent rate hike (expected to reach 0.75%, a 30-year high) has caused Japanese bond yields to surge to 17-year highs of 1.93%. Meanwhile, the Fed is entering a rate cut cycle, providing dual support for the yen. USD/JPY has fallen from 160 at the start of the year to around 154, and may test 155 in the short term, but in the medium to long term, it is expected to fall below 150.

In other words, the yen still has room to appreciate, and exchanging now is more cost-effective than waiting. But avoid converting all at once—divide into 2-3 batches to lower risk.

After exchanging for yen, don’t just let your money sit idle

Once you’ve exchanged for yen, it would be a shame to let it gather dust. Based on your risk appetite, here are some options:

Conservative: Yen fixed deposit, annual interest 1.5-1.8%, starting from 10,000 yen.

Moderate: Yen insurance policies, such as Cathay/ Fubon life foreign currency savings insurance, with guaranteed interest rates of 2-3%, held mid-term.

Advanced: Yen ETFs like Yuanta 00675U, tracking the yen index, invest in fractional shares or regular investment plans.

Aggressive: Forex trading USD/JPY or EUR/JPY in swing trading, 24-hour long/short trading, using small capital to capture exchange rate movements.

Common questions about exchange rates

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

Cash exchange rate is the rate banks buy/sell physical cash, used for immediate cash transactions. It is 1-2% worse than the spot rate, plus handling fees. Spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers and interbank settlements, offering better rates but requiring waiting.

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

Using the cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. Using the spot rate of 4.87, ≈ 48,700 yen. The difference is about 200 yen (~NT$40).

Q: What’s the daily limit for foreign currency ATM withdrawals?

After the 2025 update, different banks have slightly different limits. CTBC: NT$120,000/day; Taishin: NT$150,000/day; E.SUN: NT$150,000/day (debit card). It’s recommended to split withdrawals to avoid exceeding limits or stock shortages during peak times.

Summary

The yen is no longer just “travel pocket money”; it also functions as a hedge and investment asset. Whether you’re traveling to Japan next year or hedging Taiwan stock market risks, following the principles of “batch exchange + reinvestment after exchange” can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pick-up” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or swing trading based on needs. This way, you not only enjoy cost-effective travel but also add a layer of protection against market volatility.