Yen exchange cost panorama analysis: Four major methods are surprisingly so different

By the end of 2025, the NT$ to JPY exchange rate has reached a high of 4.85, which is not only a topic of concern for travelers but also becomes an investment option for hedging Taiwan stock market risks. But did you know? The same 50,000 NT$ converted to Japanese yen can cost over 1,500 NT$ more depending on the channel used. Let’s clarify the true costs of all currency exchange options.

Why do you need JPY? Not just for travel

When mentioning JPY, many people’s first reactions are flights, shopping, and cosmetics. But that’s just the surface. From a financial market perspective, the yen is one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc).

Practical significance of safe-haven property: When global markets are turbulent, funds flow into the yen. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10% in the same period. For Taiwanese investors, holding yen adds an extra layer of protection.

Interest rate trading opportunities: The Bank of Japan has maintained an ultra-low interest rate policy (now raised to 0.75%, still below the US 5.5%), creating arbitrage space for “yen financing.” Many professional investors borrow low-interest yen to buy dollars, earning the interest rate differential. This arbitrage may narrow further after the Bank of Japan’s December 19 meeting.

Cost comparison of four currency exchange methods

Using actual data, we list the four most common channels and estimate costs based on exchanging 50,000 NT$.

Level 1: Foreign currency ATM (fastest but limited)

Using a chip-enabled financial card at a bank’s foreign currency ATM to withdraw yen cash directly, supporting 24-hour operation, with a cross-bank fee of only 5 NT$. E.SUN Bank’s foreign currency ATM has a daily withdrawal limit of 150,000 NT$ equivalent in yen.

Cost estimate: Exchanging 50,000 NT$ via ATM withdrawal results in a loss of about 800-1,200 NT$, mainly due to unfavorable exchange rates (cash buy-in about 0.5-1% worse than spot rate) plus occasional fees.

Risk warning: The locations are unevenly distributed, about 200 nationwide, with peak times (like airports) often out of cash. If you want to test with small amounts like 200 yen, ATMs are suitable for emergencies but not for large amounts.

Suitable for: Urgent cash needs, no time for counter service, busy professionals.

Level 2: Online currency exchange + airport pickup (most cost-effective plan)

This has become the most popular method in recent years. Fill in currency, amount, and pickup branch (usually reserve at Taoyuan Airport branch) via bank’s official website. No need to open a foreign currency account—just bring ID and transaction notification to pick up.

Taiwan Bank’s “Easy Purchase” online exchange fee-free (pay with Taiwan Pay, only 10 NT$), with about 0.5% favorable exchange rate. Mega International Bank offers similar service. Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours, allowing last-minute withdrawals before departure.

Cost estimate: Exchanging 50,000 NT$ yields a loss of about 300-800 NT$, the most economical among the four methods.

Limitations: Need to book 1-3 days in advance; pickup time is limited by business hours; branch cannot be changed once booked.

Suitable for: Planned travelers, cost-conscious investors, those who finalize amounts just before departure.

Level 3: Online exchange + counter pickup (preferred by investors)

Convert NT$ via online banking or app into yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). Later, withdraw at ATM or counter. If cash is needed, an additional exchange spread fee (from about 100 NT$) applies.

Advantages include staggered entry and average cost. For example, buying in installments when NT$ to yen is below 4.80 saves more than a one-time full exchange. E.SUN Bank’s foreign currency account withdrawal fee for yen cash is the spread between spot and cash rates, with a minimum of 100 NT$.

Cost estimate: Exchanging 50,000 NT$ results in a loss of about 500-1,000 NT$, but risk can be reduced through phased purchases.

Advanced options: After exchange, you can transfer yen directly into fixed deposits (annual interest 1.5-1.8%) or buy yen ETFs (like Yuanta 00675U), achieving both holding and appreciation.

Suitable for: Those with forex experience, long-term yen holders, and investors seeking portfolio diversification.

Level 4: Counter cash exchange (backup plan)

Traditional method: carry NT$ cash to bank or airport counter to exchange for yen cash. Using “cash selling rate” (about 1-2% worse than spot), plus bank fees (e.g., E.SUN, Cathay United 100-200 NT$), overall cost is highest.

Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 NT$ per yen (1 NT$ = 4.85 yen), slightly worse than E.SUN’s 0.2058. The difference is about 0.0002.

Cost estimate: Exchanging 50,000 NT$ results in a loss of about 1,500-2,000 NT$, making it the least economical choice.

Advantages: Safe, reliable, full denominations (1,000, 5,000, 10,000 yen), staff assistance on site.

Suitable for: Those unfamiliar with online operations, small temporary exchanges, or high security needs.

Actual exchange rates and fees at major banks as of December 10, 2025

The difference is small (up to 0.0011), but for 50,000 NT$, it amounts to about 220 NT$, plus fees, totaling over 500 NT$ in cost difference.

Is it worthwhile to exchange yen now? Timing analysis

Current exchange rate assessment: 4.85 NT$ per yen is relatively high. Compared to early this year at 4.46, the yen has appreciated about 8.7%, which is quite favorable for Taiwanese investors.

Short-term volatility forecast: BOJ Governor Ueda Kazuo’s hawkish comments have increased rate hike expectations, with an 80% chance of raising to 0.75% at the December 19 meeting (a 30-year high). Japanese bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 to 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150.

Investment advice: Although yen is a safe-haven currency, short-term risks include international arbitrage unwinding, causing 2-5% fluctuations. It’s recommended not to exchange all at once but to stagger entries at different rates, reducing risk and maintaining flexibility amid market volatility.

After exchanging yen, how to invest?

Exchanging yen is just the starting point. Here are four ways to generate returns:

1. Yen fixed deposit (conservative, annual interest 1.5-1.8%): E.SUN or Taiwan Bank foreign currency accounts, starting from 10,000 yen.

2. Yen insurance policies (medium-term holding, guaranteed interest 2-3%): Cathay Life or Fubon Life yen savings insurance, suitable for medium-term allocation.

3. Yen ETFs (growth-oriented, annual management fee 0.4%): Yuanta 00675U tracking yen index, can buy fractional shares via broker apps, suitable for regular investment. Especially if you want to invest small amounts over 200 yen, ETFs are a good starting point.

4. Forex swing trading (advanced, long/short): Trade USD/JPY or EUR/JPY on trading platforms, 24/7, suitable for experienced investors to capture short-term fluctuations.

FAQs

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

Cash rate applies to physical cash transactions, with on-the-spot delivery but usually 1-2% worse than spot. Spot rate is the foreign exchange market rate for settlement within two business days (T+2), used for electronic transfers, closer to international market prices. In short: cash exchange is convenient but costly; spot transfer is cheaper but takes time.

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

Formula: Yen amount = NT$ amount × current rate. Using Taiwan Bank’s cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 yen. Using spot rate (~4.87), about 48,700 yen. Difference around 200 yen.

Q: What to bring for counter exchange?

Taiwanese need ID and passport; foreigners need passport and residence permit. If pre-booked online (online exchange), also bring transaction notification. Under 20 requires parental accompaniment. Large exchanges over 100,000 NT$ may require source of funds declaration.

Q: Is there a limit for ATM cash withdrawal?

Post-October 2025, banks adjusted limits. CTBC’s equivalent of 120,000 NT$ per day, Taishin’s 150,000 NT$, E.SUN’s 50,000 NT$ per transaction and 150,000 NT$ per day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Two principles to maximize benefits and reduce costs

Yen is no longer just “travel pocket money,” but an asset with hedging and investment value.

Principle 1: Staggered exchange. Don’t convert all at once just because the rate looks good. Buy in parts at different times to average costs and keep flexibility for market changes.

Principle 2: Keep active after exchange. Whether through fixed deposits, ETFs, or small forex swing trades, let yen appreciate continuously to realize its hedging potential.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM” for low-cost, simple entry. Experienced investors can combine yen fixed deposits or ETFs, or use yen diversification during global market turbulence to hedge risks. This way, traveling becomes more economical, and investing more secure.