Analysis of the Japanese Yen Exchange Cost | Taiwan Investors' Currency Exchange Guide for 2025

The NT dollar to Japanese Yen exchange rate has now reached 4.85, which is not only a concern for travelers but also a key factor in asset allocation. However, the most cost-effective currency exchange methods are often not the most convenient. Here, we analyze the four main currency exchange channels commonly used by Taiwanese people, helping you calculate the actual costs of each method.

Four Main Currency Exchange Channels: How Big Is the Cost Difference?

Many people think exchanging Yen just involves a quick trip to the bank, but just choosing the right exchange rate can save you thousands of dollars.

Counter Cash Exchange｜The Most Traditional but Most Expensive

Bring NT cash directly to a bank branch or airport counter to exchange for Yen. This is simple but uses the “cash selling rate” (about 1-2% worse than the spot rate). For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 TWD/Yen (meaning 1 TWD = 4.85 Yen). Exchanging 50,000 TWD would result in a loss of about 1,500-2,000 TWD. Some banks also charge extra fees, increasing costs further.

Suitable for: Travelers who need cash immediately at the airport or are not comfortable with online operations.

Online Exchange + Counter Withdrawal｜An Option for Investors

Use bank apps or online banking to transfer at the “spot selling rate” into a foreign currency account (about 1% discount). Then, withdraw cash at the counter or foreign currency ATM. Major banks like E.SUN support this. Withdrawal fees start at around 100 TWD. This method is suitable for those monitoring the low point to buy in batches, e.g., waiting for NT to drop below 4.80 before buying. Cost for exchanging 50,000 TWD is about 500-1,000 TWD, saving 30-50%.

Suitable for: Investors with foreign exchange experience, planning to hold Yen deposits or investments long-term.

Online Currency Conversion + Airport Pickup｜The Best Pre-Departure Option

No need for a foreign currency account. Simply fill in the amount, pickup location, and date on the bank’s website, then pick up cash at the counter after completion. Taiwan Bank’s “Easy Purchase” online currency conversion has no handling fee, with a 0.5% exchange rate advantage, and allows reservation for 14 pickup points at Taoyuan Airport (including 2 open 24 hours). Reservations take 1-3 days, but costs are lowest, with an estimated loss of only 300-800 TWD for 50,000 TWD.

Suitable for: Travelers with a planned schedule who want to complete currency exchange before departure, especially those traveling to Australia or Japan needing cash.

Foreign Currency ATMs｜24-Hour Emergency Solution

Use chip-enabled financial cards at foreign currency ATMs to withdraw Yen directly, with no exchange fee and only a 5 TWD cross-bank fee deducted from your TWD account. However, there are few locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 Yen), and cash shortages during peak times. Fubon Bank’s foreign currency ATM has a daily limit of 150,000 TWD. Cost for 50,000 TWD is about 800-1,200 TWD.

Suitable for: Sudden cash needs or busy professionals who don’t have time to visit the bank.

Cost Comparison Table｜Based on 50,000 TWD

Is Now a Good Time to Exchange Yen?

Since 2025, the NT dollar to Yen has appreciated by 8.7% (from 4.46 at the start of the year to 4.85 now). For Taiwanese investors, this is a significant currency gain. From a hedging perspective, Yen is one of the three major global safe-haven currencies (along with USD and Swiss Francs), providing protection during Taiwan stock market volatility. From an arbitrage perspective, the Bank of Japan is about to raise interest rates (expected to increase to 0.75% on December 19, reaching a 30-year high), and USD/JPY has fallen from the high of 160 at the start of the year to 154.58.

Practical advice is to buy in batches. Short-term fluctuations may hover around 150-155, but medium to long-term forecasts suggest it will be below 150, making staggered purchases a good way to lower average costs. Large one-time exchanges carry higher risks and are more vulnerable to volatility.

After Exchanging Yen｜4 Ways to Make Your Money Work

After exchanging Yen, your money shouldn’t just sit idle. Here are some options suitable for small-scale beginners:

Steady Income｜Yen Fixed Deposit Open a foreign currency account at E.SUN or Taiwan Bank, with a minimum deposit of 10,000 Yen, offering an annual interest rate of 1.5-1.8%. For example, 50,000 Yen yields about 100-150 Yen in interest per year, providing stable but low-risk returns.

Mid-term Holding｜Yen Savings Insurance Cathay United Bank or Fubon Life’s Yen savings insurance offers guaranteed interest rates of 2-3%, suitable for 3-5 year investment periods.

Growth Allocation｜Yen ETFs Yuan Tai 00675U and other Yen index-tracking ETFs can be bought as fractional shares via brokerage apps, suitable for dollar-cost averaging. Management fees are around 0.4% annually, slightly higher risk than bank deposits but with better growth potential.

Swing Trading｜Forex Trading Trade USD/JPY or EUR/JPY on regulated forex platforms (like Mitrade), with zero commissions, long and short options, and 24-hour trading. Use stop-loss and take-profit tools. Suitable for experienced investors aiming to capture short-term volatility.

Overlooked Details When Exchanging Yen

Cash Rate vs. Spot Rate Cash rate is the rate banks offer for physical banknotes, higher cost but immediate delivery; spot rate is the interbank market rate, better by 1-2% but requires T+2 settlement. Investors usually choose spot; travelers often use cash rates.

Foreign Currency ATM Withdrawal Limits From 2025, most banks have increased their own card daily limit to 150,000 TWD, and other bank cards to 20,000 TWD per transaction. During peak times (airports, shopping districts), cash can run out quickly. Planning ahead and spreading out withdrawals is recommended.

Reporting Large Currency Exchanges Exchanges exceeding 100,000 TWD may require declaration of source of funds, with ID or passport needed.

Conclusion

Yen is no longer just for travel pocket money but also a valuable asset with hedging and investment potential. Whether planning a 7-day trip to Australia, traveling in Japan, or asset allocation, the key is “buy in batches and don’t just sit on your hands after exchanging.” Beginners should start with online currency conversion or foreign currency ATMs from Taiwan Bank, then progress to deposits or ETFs. This approach reduces exchange costs and adds a layer of protection during global turbulence.