Japanese Yen Exchange Guide: Cost Comparison of 4 Major Channels and the Best Timing

In December 2025, the NT dollar to Japanese Yen exchange rate surpassed 4.85, appreciating over 8% since the beginning of the year. With travel demand to Japan rebounding and the yen’s increasing appeal as a safe-haven asset, many are starting to plan currency exchanges. But did you know? Choosing the wrong method could result in a difference of NT$2,000 in costs. We tested four major exchange channels in Taiwan to help you find the most cost-effective option.

Why is the Yen worth paying attention to? Not just for travel currency

Daily scenarios: travel, shopping, purchasing agents

When traveling in Japan, cash remains the primary payment method (credit card penetration is only 60%). From shopping in Tokyo to skiing in Hokkaido, many small merchants only accept cash. Additionally, purchasing Japanese cosmetics, anime merchandise, and other items often requires direct yen transactions. Those planning long-term stays or working holidays in Japan usually exchange currency in advance to avoid exchange rate fluctuations.

Financial market perspective: One of the three major safe-haven currencies

The yen is ranked alongside the US dollar and Swiss franc as a global safe-haven currency. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, effectively offsetting a 10% decline in the stock market. For Taiwanese investors, holding yen assets can hedge against Taiwan stock risks.

Japan’s long-term ultra-low interest rate policy (~0.5%) has made the yen a financing currency, with many investors engaging in arbitrage trades (borrowing low-interest yen to invest in higher-yield USD, with a spread of up to 4%). However, when risks increase, closing positions and buying back yen can cause short-term volatility.

Taiwan Yen exchange methods: Cost testing of 4 options

Many people mistakenly believe there is only one channel—banks. In reality, exchange rates and fees vary greatly among different methods. Here is the actual cost ranking:

Option 1: Bank counter cash exchange — the most traditional but most expensive

Bring NT cash directly to a bank counter or airport to exchange for yen cash, using the “cash selling rate” (1-2% worse than the international spot rate). For example, Taiwan Bank’s rate on December 10, 2025, was 0.2060 NT$/Yen, meaning NT$10,000 exchanges for only 48,500 Yen.

Some banks charge additional handling fees (NT$100-200), making total costs potentially NT$1,500-2,000.

Advantages: Safe, denominations available, staff assistance
Disadvantages: Worst exchange rate, limited business hours, possible handling fees
Suitable for: Urgent airport needs or unfamiliar with online methods

Major banks’ rates on December 10, 2025 (cash selling rate): Taiwan Bank 0.2060, Mega Bank 0.2062, CTBC 0.2065, E.SUN 0.2058 (+NT$100 fee), Fubon Bank 0.2069 (+NT$100 fee).

Option 2: Online exchange + counter or ATM withdrawal — second-best rate

Use bank app or online banking to convert NT$ into Yen in a foreign currency account, using the “spot selling rate” (about 1% better than cash rate). If cash is needed, withdraw at counters or foreign currency ATMs, but a NT$100-200 withdrawal fee applies.

This method suits investors monitoring rates and making phased investments. E.SUN Bank, Mega Bank, and others support this service, with Yen fixed deposits offering about 1.5-1.8% annual interest.

Advantages: 24-hour operation, averaged cost over time, fixed deposit benefits
Disadvantages: Need foreign currency account, withdrawal fees apply
Suitable for: Those with forex investment experience

Option 3: Online currency exchange + airport pickup — best pre-departure choice

No foreign currency account needed. Fill in amount, currency, pickup branch, and date on the bank’s website. After remittance, present ID and transaction notice at the counter to collect cash. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay NT$10 via TaiwanPay), with about 0.5% better rates.

Key advantage: reservation for airport branch pickup. Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours, making it convenient to withdraw before departure.

Advantages: Better rates, often no fees, airport pickup, easy reservation
Disadvantages: Need to book 1-3 days in advance, branch changes not allowed
Suitable for: Planning travelers

Option 4: Foreign currency ATM withdrawal — most flexible but limited locations

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash 24/7. Deduct NT$5 cross-bank fee from your NT account. Fubon Bank’s foreign currency ATMs have a daily limit of NT$150,000.

There are about 200 foreign currency ATMs nationwide, mainly in urban bank branches. Denominations are fixed at 1,000, 5,000, and 10,000 Yen. During peak times (e.g., airports), cash may run out quickly, so plan ahead to avoid unnecessary trips.

Advantages: 24/7 instant withdrawal, low cross-bank fee, no exchange fee
Disadvantages: Limited locations (~200), fixed denominations, possible cash shortages during peak times
Suitable for: Urgent, on-the-spot needs or no time for counter visits

Cost comparison table (based on NT$50,000 exchange)

Is now a good time to exchange Yen?

Short answer: Yes, but operate in phases.

The Yen exchange rate is still fluctuating. Recently, Japan’s central bank governor Ueda Kazuo’s hawkish comments pushed up rate hike expectations to 80%, with a December 19 meeting expected to raise it to 0.75% (a 30-year high). Meanwhile, the US entering a rate cut cycle provides support for the Yen. USD/JPY has fallen from 160 at the start of the year to 154.58, with short-term tests around 155, but medium to long-term forecasts suggest below 150.

From a hedging perspective, Yen is suitable for offsetting Taiwan stock risks, but be aware of arbitrage closing risks (which could cause 2-5% volatility). It’s recommended to buy in 3-4 installments rather than all at once.

Strategies to increase value after exchanging Yen

Idle Yen funds should be allocated rather than depreciate:

Yen fixed deposit: Most stable, annual interest 1.5-1.8%, open with as little as 10,000 Yen
Yen insurance policies: Medium-term holding, savings insurance with 2-3% guaranteed interest
Yen ETFs (e.g., Yuanta 00675U, 00703): Suitable for dollar-cost averaging, management fee 0.4%, diversified risk
Forex trading: Capture USD/JPY, EUR/JPY fluctuations, with 24-hour long/short trading

While Yen is a strong safe-haven, it still faces two-way risks. Rate hikes are bullish, but geopolitical conflicts or global arbitrage unwinding could push prices down. Investors should choose allocation methods based on their time horizon and risk tolerance.

Quick FAQ

Q: How much is the difference between cash exchange rate and spot rate?
Cash rate applies to physical banknotes, usually 1-2% worse than the spot rate (T+2 settlement). It’s convenient for immediate exchange but more costly.

Q: Are foreign currency ATMs sufficient?
About 200 nationwide, mainly in bank branches and city centers. Densities are higher in urban areas, fewer in remote regions. Cash shortages may occur during peak times (holidays, airports). Check nearby locations in advance.

Q: Are there limits for large exchanges?
Exchanges over NT$100,000 may require source of funds declaration. Daily ATM withdrawal limits are typically NT$100,000-150,000. Consider splitting transactions.

Q: Can minors exchange currency?
Yes, with parental consent and ID. For counter transactions, bring ID and passport (foreigners need passport and residence permit).

Summary

The Yen is no longer just for travel pocket money but also a safe-haven and investment asset. Whether traveling next year or positioning for NT dollar depreciation, applying the principles of “phased exchange + value appreciation after exchange” can minimize costs.

Beginners can start with Taiwan Bank’s online airport pickup or use convenient foreign currency ATMs for quick top-ups. As experience grows, combine fixed deposits, ETFs, or swing trading to amplify gains. Not only will you save on travel costs, but you’ll also gain an extra layer of protection during market fluctuations.