How to exchange Japanese Yen at the bank? Master the procedures, exchange rates, and the best timing all at once

Essential Tips Before Exchanging JPY: What Documents Are Most Secure to Bring

Many people get stopped at the door when exchanging yen at the bank due to insufficient document preparation. What documents to bring for bank exchange of yen—this seemingly simple question actually directly affects your currency exchange efficiency.

Required documents for in-person handling:

• ID card + passport (mandatory for locals)
• Passport + residence permit (for foreigners)
• Transaction notification letter (if booked online in advance)
• Large amount currency declaration form (over NT$100,000 requires source of funds)

Additional notes for special cases:

• Under 20 years old: must be accompanied by a parent + consent form
• Company currency exchange: business registration proof
• Online currency purchase and withdrawal: be sure to bring transaction notification letter

Preparing sufficient documents is not just a formality but also helps avoid unnecessary trips. Especially at the airport before departure, where time is tight, having a checklist of required documents can save a lot of trouble.

Why Exchange for Yen? Dual Value in Investment and Daily Life

The demand for yen in Taiwan continues to rise, not just for travel expenses.

Daily applications: travel shopping (Tokyo, Osaka, Okinawa mostly still cash-based, credit card penetration only around 60%), purchasing via proxy and online shopping (Japanese cosmetics, clothing, anime merchandise paid directly), studying abroad or working holiday (long-term residency planning).

Financial aspects: the Japanese yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc) due to Japan’s stable economy and low debt ratio. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%, serving as a hedge. For Taiwanese investors, converting to yen is not just for fun but also a risk management tool for asset allocation.

Additionally, Japan’s long-term ultra-low interest rate (only 0.5%) makes the yen a “funding currency,” where arbitrage traders often borrow yen at low interest to invest in higher-yield USD, with a USD-JPY interest rate spread over 4.0%.

Four Main Channels for Currency Exchange in Taiwan: From Counter to ATM, Full Analysis

Choosing the right exchange method can save significant costs. We analyze each one.

Option 1: Bank Counter Exchange (Most Traditional)

Bring cash NT$ to a bank branch or airport counter and use the cash selling rate to exchange for yen notes.

Cost analysis: Based on Taiwan Bank’s rate on December 10, 2025, the cash selling rate is about 0.2060 NT$/JPY (i.e., NT$1 = 4.85 JPY). This rate is about 1-2% worse than the spot rate. Some banks also charge an handling fee of NT$100-200. Exchanging NT$50,000 results in a loss of about NT$1,500-2,000.

Reference rates from December 2025:

Advantages: Safe and reliable, denominations available (1,000/5,000/10,000 JPY), staff assistance on-site.

Disadvantages: Worse exchange rate, limited business hours (Weekdays 9:00-15:30), possible extra handling fees.

Suitable for: Those unfamiliar with online operations or needing small amounts temporarily (e.g., urgent airport needs).

Option 2: Online Currency Exchange via Transfer (Preferred for Forex Investors)

Use online banking or app to buy yen and deposit into a foreign currency account, enjoying spot selling rate (about 1% better than cash selling). If cash withdrawal is needed, go to counter or foreign currency ATM, but with additional exchange spread fee (from NT$100).

Operation steps: Open foreign currency account → Log in app → Select currency exchange → Enter amount and batching strategy → Deduct funds → Choose withdrawal method

Cost analysis: For example, E.SUN Bank, after online exchange, if withdrawing yen notes, handling fee equals the difference between spot and cash rate, at least NT$100. Exchanging NT$50,000 results in a loss of about NT$500-1,000, cheaper than counter exchange.

Advantages: 24/7 operation, ability to average costs via batching, better rates, good for low-point entry (e.g., when NT$ to JPY drops below 4.80).

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

Suitable for: Those experienced in forex, frequently using foreign currency accounts, and planning to convert into yen deposits (current annual interest 1.5-1.8%) or yen ETFs.

Option 3: Online Currency Purchase Reservation for Pickup (Most Convenient Before Travel)

No need for a foreign currency account. Book exchange online via bank website, select amount, branch, and date. After confirmation, bring ID and transaction notification to pick up in person. Taiwan Bank and Mega Bank offer this service, with airport branches available.

Operation steps: Fill in currency/amount/branch on bank website → Pay via TaiwanPay → Receive confirmation notification → Bring ID + notification to pick up

Cost analysis: Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rate. Exchanging NT$50,000 results in only NT$300-800 loss, the most cost-effective among all options.

Advantages: Favorable rates, often no handling fee, can specify airport branch (Taoyuan Airport has 14 Taiwan Bank outlets, 2 open 24 hours), well-planned.

Disadvantages: Need to book 1-3 days in advance, pickup limited to banking hours, branch cannot be changed once confirmed.

Suitable for: Travelers with clear plans who want to withdraw directly at the airport, especially those booking a week before departure.

Option 4: Foreign Currency ATM Withdrawal (Best for Night-time Emergency)

Use chip-enabled bank card at foreign currency ATM to withdraw yen notes directly, supporting 24-hour operation and interbank transactions. Deduct NT$5 cross-bank fee from NT$ account, no exchange handling fee.

Operation steps: Find a bank with foreign currency ATM support → Insert card → Select yen → Enter amount → Withdraw cash

Cost analysis: SinoPac Bank’s foreign currency ATM limit is NT$150,000 per day, no exchange fee, cross-bank fee NT$5. Exchanging NT$50,000 results in a loss of about NT$800-1,200, moderate level.

Limitations (as of October 2025):

Advantages: Instant withdrawal, high flexibility, 24/7 availability, low cost from NT$ account.

Disadvantages: Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 JPY), high traffic times may run out of cash.

Suitable for: Those with no time to visit bank, urgent needs, especially for night or holiday withdrawals.

Tip: Don’t wait until the last minute to withdraw, especially at busy airport locations where cash may run out.

Summary Table of Four Methods: Cost, Risks, Suitable Scenarios

Beginner tip: For budgets NT$50,000-200,000, the best strategy is “Online exchange + ATM withdrawal”—use online exchange for main amount, ATM for small cash needs.

Is It Worth Exchanging Yen Now? Exchange Rate Trend Analysis

As of December 10, 2025, the NT$ to JPY rate is about 4.85, up 8.7% from early this year’s 4.46, making currency exchange gains attractive. In the second half of 2025, forex demand in Taiwan increased by 25%, mainly due to travel recovery and hedging needs.

Short-term support factors: The Bank of Japan (BOJ) is expected to raise interest rates strongly, with Governor Ueda’s hawkish comments pushing expectations to 80%, with a rate hike of 0.25bps to 0.75% at the December 19 meeting (highest in 30 years). Japanese government bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from 160 early this year to 154.58, with short-term rebound to 155 possible, but long-term forecast suggests returning below 150.

Investment perspective: Yen as a major safe-haven currency is suitable for hedging Taiwan stock market volatility, but short-term risks include unwinding of arbitrage trades, with possible fluctuations of 2-5%. It’s advisable to stagger purchases rather than exchange all at once.

Conclusion: Yes, exchanging yen now is advantageous, but operate in batches and avoid holding without yield.

Advanced Asset Allocation After Exchanging Yen

Don’t let your yen sit idle without earning interest. Here are four advanced allocations suitable for small-scale beginners:

1. Yen Fixed Deposit (Stable) Deposit via E.SUN or Taiwan Bank foreign currency accounts online, starting from 10,000 yen, with annual interest of 1.5-1.8%. Annual interest is about 600-800 yen, offering low-risk stable returns.

2. Yen Insurance Policy (Mid-term Hold) Cathay, Fubon life savings insurance, with guaranteed interest rates of 2-3%, suitable for 3-5 year medium-term planning.

3. Yen ETF (Growth) Yuanta 00675U, 00703 tracking yen index, can be bought as fractional shares via broker app, with annual management fee of 0.4%. Diversifies risk, suitable for long-term allocation.

4. Forex Swing Trading (Advanced) Trade USD/JPY or EUR/JPY directly on forex platforms, supporting long and short positions, 24-hour trading, capturing exchange rate fluctuations.

Recommendation: Yen as a hedge is strong, but with two-way volatility. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may depress prices. Beginners should consider yen deposits + small ETF dollar-cost averaging; advanced traders may try swing trading.

Quick FAQs

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

Cash rate (Cash Rate) applies to physical cash buying/selling, convenient for immediate delivery but 1-2% worse than spot rate. Spot rate (Spot Rate) used for T+2 settlement (electronic transfer, no cash), more favorable but takes time. In short, in-person is quick but costlier; online is cheaper but slower.

Q: How much yen for NT$10,000?

Using Taiwan Bank’s rate on December 10, 2025, 4.85, NT$10,000 × 4.85 = about 48,500 yen. If using spot rate 4.87, then NT$10,000 × 4.87 = 48,700 yen, a difference of 200 yen (~NT$40).

Q: What’s the daily limit for ATM withdrawal in Taiwan?

Post-October 2025, limits are generally NT$100,000-150,000 per day, due to anti-fraud measures. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees. During peak times, cash may run out, so plan ahead.

Q: Are there restrictions on Japanese ATM withdrawals?

By late 2025, Japanese ATMs will require international cards (Mastercard/Cirrus). It’s advised to prepare cash or arrange cross-border withdrawal plans before departure.

Conclusion: Yen Isn’t Just Travel Pocket Money

Yen has evolved into an asset with both hedging and small investment value. Whether you’re planning a trip to Japan next year or diversifying funds amid NT$ depreciation, mastering “batch exchange + don’t hold idle” principles can lower costs and amplify gains.

Beginners should start with “Taiwan Bank online exchange + airport withdrawal” or “foreign currency ATM,” then transition into deposits, ETFs, or swing trading based on needs. This way, you not only enjoy cost-effective travel but also add a layer of asset protection during global market turbulence.