Japanese Yen Exchange Practical Guide: Breakdown of 4 Methods' Costs, Choose the Right Method to Save Thousands

By the end of 2025, the NT$ to JPY exchange rate has stabilized around 4.85, and many people are starting to seriously consider exchanging for Japanese yen. But do you know? Exchanging 50,000 NT$ through the wrong channel could cost you an extra 1,500 NT$. Today, we will break down the mainstream methods of exchanging JPY in Taiwan to help you find the most suitable solution for your needs.

Why is now a good time to consider exchanging for JPY?

The Japanese yen is not just a “spare change” for travel; it also carries a more important role.

First, Japan’s economy is stable, with low debt, making the yen one of the three major safe-haven currencies globally (the other two are USD and Swiss Franc). Whenever the market experiences turbulence—such as the Russia-Ukraine conflict in 2022—capital floods into the yen seeking refuge. During that week, the yen appreciated by 8%, while the stock market fell by 10%. For Taiwanese investors, allocating some yen during stock market volatility can serve as a hedge.

Second, the Bank of Japan has just begun raising interest rates. Governor Ueda Kazuo recently signaled a hawkish stance, and the market expects the December 19 meeting to raise rates to 0.75% (a 30-year high), boosting the yen’s attractiveness. Meanwhile, the US is entering a rate-cut cycle, and the widening US-Japan interest rate differential is good news for those exchanging for yen.

Additionally, the NT$ has been under significant depreciation pressure this year. Taking advantage of exchange rate fluctuations by gradually exchanging for yen can also help diversify risk.

Practical comparison of Taiwan’s 4 major JPY exchange channels

When it comes to exchanging yen, many people habitually go to banks. But in reality, just choosing the right channel can save you thousands. We will analyze four of the latest methods one by one.

Method 1: Bank counter cash exchange — the most traditional but most costly

Bring cash NT$ directly to a bank or airport branch, where staff will count, exchange, and pack the money for you. The process is straightforward, but the cost is definitely not cheap.

Banks use the “cash selling exchange rate,” which is 1-2% worse than the market spot rate. For example, according to Taiwan Bank’s rate on December 10, 2025, the cash selling rate is about 0.2060 NT$/JPY (meaning 1 NT$ = 4.85 JPY), and some banks charge additional handling fees.

Based on announcements from major banks that day, counter handling fees range from NT$0 to NT$200. Therefore, exchanging NT$50,000 could result in a loss of NT$1,500 to NT$2,000.

When to use this method? Only in one scenario: if you have no time to do research and just need to handle an emergency at the airport or bank. For planned exchanges, this is definitely not the first choice.

Method 2: Online currency exchange + foreign currency account withdrawal — investors’ top choice

This method involves two steps. First, complete the “NT$ to JPY” transfer via bank app, using the “spot sell rate” (about 1% better than cash selling rate). The yen is directly deposited into your foreign currency account. If you need to withdraw cash later, you can do so at counters or via foreign currency ATMs, but additional withdrawal fees may apply.

For example, E.SUN Bank’s app offers good rates; when withdrawing cash, you only pay the difference between the spot rate and the cash rate, with a minimum of NT$100. Sinopac’s foreign currency account withdrawal is even more flexible, allowing 24-hour self-service via foreign currency ATMs.

The biggest advantage of this method? Time flexibility. You can monitor exchange rate trends and enter gradually at low points (e.g., when NT$ to JPY drops below 4.80). This not only saves on fees but also averages your cost. Plus, holding yen in a foreign currency account allows you to invest in yen fixed deposits (currently 1.5-1.8% annual interest) or buy yen ETFs, making idle funds generate returns.

Disadvantages? You need to open a foreign currency account in advance and have some understanding of exchange rates. It might be steep for complete beginners.

Method 3: Online currency exchange + airport pickup — best pre-arranged before travel

Designed for travelers. You book online via the bank’s website, specify the amount and pickup branch (preferably at the airport). The bank completes the transfer, and you just need to bring your ID and transaction notification to pick up cash.

Taiwan Bank’s “Easy Purchase” online exchange is especially convenient—no handling fee (pay NT$10 via Taiwan Pay), with about 0.5% better rates. There are 14 Taiwan Bank locations at airports nationwide, including two open 24 hours, so you can almost pick up money at any flight time.

Cost-wise, exchanging NT$50,000 results in only NT$300 to NT$800 loss, saving more than half compared to counter exchange. Key: book in advance—allow at least 1 to 3 days for processing.

Who is this best for? Travelers with clear plans who want to pick up yen cash directly at the airport. No need to understand foreign currency accounts; the operation is simple, but timing is crucial.

Method 4: Foreign currency ATM self-withdrawal — emergency hero

Use a bank card to withdraw yen cash at foreign currency ATMs, open 24 hours, with a cross-bank fee of NT$5. Sinopac’s foreign currency ATMs support direct deduction from NT$ accounts, with a daily limit of NT$150,000, and no exchange fee.

Sounds very convenient, but in reality, foreign currency ATM locations are limited (about 200 nationwide), and denominations are fixed at 1,000, 5,000, and 10,000 yen. During peak times (especially at airports), cash may already be out.

When to use? If you have no time to visit a bank and need urgent cash, or for small top-ups. But don’t rely on this as your main method.

Cost overview of exchanging NT$50,000

Comparing the costs, advantages, and disadvantages of the four methods:

Is it worthwhile to exchange now? Staggered approach beats one-time exchange

By the end of 2025, the yen exchange rate is relatively high. From the start of the year at 4.46 to now at 4.85, appreciating about 8.7%, those who exchanged early have gained. But what about the future?

In the short term, the BOJ’s rate hikes are bullish for the yen, and US bond yields hitting new highs support the exchange rate. USD/JPY has fallen from a high of 160 early this year to around 154, with a short-term expectation of returning to 155. However, the medium to long-term trend is likely to head below 150.

Advice for investors: Don’t exchange all at once; do it gradually. The reason is that fluctuations within 2-5% are normal, and a single large purchase is essentially a gamble. Also, after the BOJ rate hikes, arbitrage unwinding may cause short-term volatility, so staggered entry can be advantageous.

For example, if you plan to exchange NT$500,000 into yen, instead of doing it all at once, split into 5 times of NT$100,000 each, using online exchange + foreign account withdrawal at different times. This way, you can catch lows and avoid being stuck with unfavorable rates.

Advanced options after acquiring yen

Once you have yen, don’t let it sit idle in your foreign currency account—there are many options to generate returns.

Yen fixed deposit — the most stable. Open an account with E.SUN or Taiwan Bank, with annual interest rates of 1.5-1.8%. Minimum deposit of 10,000 yen, suitable for conservative investors.

Yen insurance policies — medium-term allocation. Buy savings insurance with guaranteed 2-3% interest, plus insurance coverage. Cathay or Fubon Life offer relevant products.

Yen ETFs (e.g., Yuanta 00675U) — growth-oriented options tracking the yen index. You can buy fractional shares via brokerage apps, with monthly dollar-cost averaging to smooth costs, and an annual management fee of only 0.4%.

Forex swing trading — if you want more active management, trade USD/JPY or EUR/JPY directly on forex platforms, capturing rate fluctuations. This method offers long and short positions, 24-hour trading, and requires some technical knowledge, but with small capital.

Quick FAQs

Q: What is the difference between cash rate and spot rate?

Cash rate refers to buying and selling physical bills and coins. The advantage is immediate cash pickup, but the rate 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 bank settlements, closer to the actual market price.

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

Use the formula: 【Yen amount = NT$ amount × current rate】. At Taiwan Bank’s cash selling rate of 4.85, NT$10,000 can get about 48,500 yen; at the spot rate of 4.87, about 48,700 yen. The difference is about 200 yen, roughly NT$40.

Q: What do I need to bring for counter exchange?

Citizens: ID card + passport; foreigners: passport + residence permit. Companies: business registration certificate. For online booking, bring transaction notification. Under 20 years old: parental consent and ID; for large amounts over NT$100,000, may need to declare source of funds.

Q: What is the limit for foreign currency ATM withdrawal?

Post-2025 regulations vary by bank. For example, CTBC: NT$120,000 per transaction and per day; Taishin: NT$150,000 per transaction and per day; E.SUN: NT$50,000 per transaction (50 bills), NT$150,000 per day (including card swipe). Cross-bank limits depend on issuing bank. During peak times, cash may be insufficient—plan ahead.

Final advice

The yen is no longer just pocket money for travel; it also has hedging and investment value. Current exchange rates are relatively friendly for Taiwanese, but rates always fluctuate bidirectionally, and perfect timing is impossible.

The best approach boils down to two key points: staggered exchange, don’t sit on the money after exchanging.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM self-withdrawal.” After gaining familiarity, upgrade to “online exchange + foreign currency account withdrawal,” combined with yen fixed deposits or ETFs. This way, you can save costs when traveling and add a layer of protection during market volatility.