Is now the best time to exchange Japanese Yen? The 4 major currency exchange methods revealed—choosing the wrong one could cost you an extra 2000 yuan

The NT$ to JPY exchange rate has reached 4.85, up from just 4.46 at the beginning of the year, a cumulative appreciation of 8.7%. Many people are starting to get eager to exchange for yen. But do you know? Just choosing the wrong currency exchange channel can cost you an extra NT$1,500 to NT$2,000 on 50,000 NT$. Today, we’ll help you calculate the latest exchange rates clearly.

4 Ways to Exchange for Yen, with Significant Cost Differences

Many think that exchanging yen is simply going to a bank counter to withdraw cash, but in fact, the exchange rate and handling fees vary greatly across channels. Based on bank rates as of December 10, 2025, we analyze each method.

Method 1: Direct cash exchange at the counter, the most traditional but most expensive

Bring cash NT$ to the bank counter or airport to exchange for yen notes. This is the most common method. However, the “cash selling rate” is usually 1-2% worse than the market spot rate, plus some banks charge handling fees. Exchanging NT$50,000 might result in a loss of NT$1,500 to NT$2,000.

For example, Taiwan Bank’s cash selling rate is about NT$0.2060 per yen (i.e., NT$1 = 4.85 yen), and E.SUN Bank charges an additional NT$100 handling fee at the counter. Comparing with the exchange rate logic used for Korean won to HKD, you’ll find cash transactions are always the most costly.

When to use this method: Urgent needs at the airport, small amounts, unfamiliar with online operations.

Method 2: Online currency exchange then cash withdrawal, better rates but withdrawal fee applies

Log into your bank app or online banking, use the “spot sell rate” to convert NT$ to yen in your foreign currency account, saving about 1%. But when withdrawing cash, you’ll still pay a handling fee starting at NT$100. Overall cost ranges from NT$500 to NT$1,000, much better than counter exchange.

This method suits those with foreign currency accounts, who frequently deal with forex. You can stagger your entries, average your costs, or even keep yen in your account to earn interest (current annual rate around 1.5-1.8%).

When to use this method: Observing exchange rates over time, aiming to average costs, planning long-term yen holdings.

Method 3: Online currency settlement with airport pickup, most convenient

Taiwan Bank and Mega Bank offer “online currency settlement” services. Fill in the amount and pickup branch (including 14 locations at Taoyuan Airport) on their website, then bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” also waives handling fees (using Taiwan Pay costs only NT$10), with about 0.5% better rates, resulting in NT$300-800 loss.

Book online 1-3 days before departure, pick up yen directly at the airport, saving queuing time and exchange rate spread. This has become the smartest approach in recent years.

When to use this method: Planning to go abroad, wanting immediate airport pickup, unsure about rate trends.

Method 4: 24-hour foreign currency ATMs, a lifesaver for last-minute needs

Use a debit card at foreign currency ATMs to withdraw yen anytime, anywhere—no need to match banking hours. Interbank withdrawals cost only NT$5. The Mega Bank foreign currency ATM has a daily limit of NT$150,000 and no exchange fee.

Disadvantages include limited locations (only about 200 nationwide), fixed denominations (1000/5000/10000 yen), and possible sell-outs during peak times. Avoid waiting until the last minute; especially at airports, cash may run out quickly.

When to use this method: Last-minute needs, no time to visit a bank, flexible withdrawal timing required.

How to get the most value exchanging NT$50,000 for yen

Data source: Official bank websites, updated December 10, 2025.

Is it worthwhile to exchange yen now? Yes, but with conditions

The yen has risen to 4.85 against the NT$, with Taiwan’s forex demand increasing by 25% in the second half of the year. But whether you can profit from the exchange rate depends on how and when you exchange.

In the short term, the Bank of Japan Governor Ueda Kazuo has issued hawkish signals, with market expectations that the December 19 meeting will raise rates to 0.75% (a 30-year high), supporting the yen. USD/JPY has fallen from 160 at the start of the year to 154.58 now, with a short-term rebound possibly to 155, but medium to long-term forecasts are below 150.

From a hedging perspective, the yen is indeed one of the three major safe-haven currencies (along with USD and CHF), effective for hedging Taiwan stock market volatility. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week while stocks fell 10%, making it a shield. But the risk is that when arbitrage positions close, exchange rates may fluctuate 2-5%.

Suggested approach: Stagger your entries, avoid exchanging all at once. Start with 50-60%, observe for 1-2 weeks, then add more.

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

Once you have yen, there are several ways to make it grow:

Yen fixed deposit (conservative): Starting from 10,000 yen, annual interest rate 1.5-1.8%, available at E.SUN Bank and Taiwan Bank.

Yen insurance policies (medium-term holding): Cathay and Fubon life savings insurance, guaranteed interest rates of 2-3%.

Yen ETFs (growth-oriented): Such as Yuanta 00675U, 0070300703, tracking yen indices, can be bought as fractional shares via brokerage apps with management fees as low as 0.4% annually.

Forex trading (swing trading): Directly trade USD/JPY or EUR/JPY, zero commission, low spreads, 24-hour trading—suitable for those wanting to catch rate fluctuations.

Quick FAQs

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

Cash rate is used for physical cash transactions, usually 1-2% worse than the market spot rate, but convenient for immediate cash. Spot rate is for electronic transfers, close to international market prices, but settlement takes T+2 days, which is why online exchange is cheaper than counter.

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

Using the formula 【Yen = NT$ × rate】, with Taiwan Bank’s cash selling rate of 4.85, NT$10,000 = 48,500 yen. Using the spot rate of 4.87, it’s 48,700 yen. The difference is about 200 yen, roughly NT$40.

Q: What ID do I need for counter exchange?

ID card + passport. Under 20 needs parental accompaniment. For amounts over NT$100,000, you may need to declare source of funds. For online reservations, bring transaction notification.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

Post-2025 regulations, most banks set limits around NT$100,000-150,000 per day. It’s advisable to withdraw in installments. Use your own bank card to avoid cross-bank fees (NT$5 per transaction). During peak times, cash may run out—plan ahead.

Final advice

Yen is no longer just for travel pocket money; it’s a hedging asset, investment tool, and income source. Whether you plan to visit Japan next year or want to hedge against NT$ depreciation by moving into yen, the core principle is: Exchange in stages, then invest after full conversion.

Beginners should start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then gradually move into fixed deposits, ETFs, or forex trading based on needs. This way, you not only save on travel costs but also add a layer of protection during global market turbulence.