Want to save money when exchanging for Japanese Yen? One article teaches you how to get the best deal.

The NT dollar to Japanese Yen exchange rate recently surged to 4.85, and more people are preparing to travel abroad or invest in Yen. But do you know? When exchanging 10,000 NT dollars, choosing the wrong method could cost you an extra 1,500-2,000 NT dollars.

Honestly, exchanging Yen seems simple, but there are many nuances. Visiting a bank counter, online currency exchange, ATM withdrawals… each method has significantly different costs. We tested all exchange channels on the market and will tell you the most cost-effective way.

Why is now a good time to consider exchanging Yen?

Recently, the Yen has appreciated sharply. From 4.46 at the start of the year to 4.85 now, an 8.7% increase in just one year, which translates into real FX gains for Taiwanese investors.

More importantly, the Yen is not just for travel “pocket money.” From a financial market perspective, the Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). When global stock markets fluctuate wildly, capital flows into Yen. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, successfully buffering stock market declines. This means holding Yen can also hedge your Taiwan stock market risks.

Additionally, Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations that the December 19 meeting will raise interest rates to 0.75% (a 30-year high), which could support Yen strength.

4 exchange methods, which is most cost-effective?

1. Bank counter exchange: most expensive but safest

Bring cash NT dollars to a bank or airport counter to exchange directly for Yen cash. Simple operation, but the highest cost—because banks use the “cash selling rate,” which is about 1-2% worse than the spot rate.

For example, Taiwan Bank’s cash selling rate on December 10 was about 0.2060 (about 4.85 Yen per NT dollar). Exchanging 50,000 NT dollars at this rate results in a loss of 1,500-2,000 NT dollars. Some banks also charge handling fees (E.SUN and Fubon each 100 NT, Cathay United 200 NT).

Suitable for: Small emergency cash needs (like at the airport), or those unfamiliar with online operations.

2. Online exchange + counter or ATM withdrawal: moderately cost-effective

Use bank app or online banking to convert NT dollars to Yen at the “spot sell rate” (about 1% better than cash selling rate). Funds are stored in a foreign currency account; when cash is needed, go to the counter or ATM to withdraw.

Withdrawal incurs FX handling fees (minimum 100 NT). Good news: the exchange rate itself is more favorable—E.SUN Bank, for example, loses only 500-1000 NT for 50,000 NT. The downside is you need to open a foreign currency account in advance, adding an extra step.

Suitable for: Those willing to research exchange rates, want to average costs over multiple entries, or plan to invest in Yen deposits later.

3. Online currency exchange + airport withdrawal: best value for money

This is the smartest choice before traveling abroad. No need to open a foreign currency account. Just fill in the amount, currency, branch, and date on the bank’s website, then go to the counter with ID and transaction notification to pick up. Taiwan Bank’s “Easy Purchase” even waives handling fees (pay with TaiwanPay for only 10 NT), with a 0.5% exchange rate advantage. Exchanging 50,000 NT results in only 300-800 NT loss.

The key is Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours—allowing you to pick up Yen cash directly at the airport and spend immediately after arriving abroad.

Suitable for: Well-planned travelers who know their departure date in advance and want convenient cash pickup at the airport.

4. Foreign currency ATM: most flexible but depends on luck

Use a chip-enabled financial card to withdraw Yen cash from foreign currency ATMs, available 24/7. Deducts directly from your NT account with only a 5 NT cross-bank fee, cheaper than other methods.

However, there are two issues: first, the number of foreign currency ATMs nationwide is limited (about 200 units); second, during peak times (especially at airports), cash may run out. Fubon Bank’s foreign currency ATMs allow withdrawals up to 150,000 NT per day without FX handling fees, costing about 800-1200 NT.

Suitable for: Those with no time to visit banks, urgent needs, or willing to take a chance.

Cost comparison of 4 methods (based on 50,000 NT)

How to choose Yen denominations?

This is often overlooked but very important. Most Japanese stores only accept cash (credit card penetration is about 60%), so you need to prepare small change.

Practical denomination mix:

• Travel: Bring more 1000 Yen notes (for buses, convenience stores), and a few each of 5000 and 10000 Yen notes (for restaurants, hotels). Recommended ratio: 1000:5000:10000 = 5:3:2.
• Small purchases: Focus on 1000 Yen and 5000 Yen notes for street stalls and cafes.
• Investment holding: No denomination restrictions; focus on total amount.

Both bank counter and online currency exchange allow you to select denominations, but ATMs usually only have fixed sets of 1000/5000/10000 Yen. Plan ahead.

Is now really a good time to exchange Yen?

Honestly—yes, but do it in batches, not all at once.

Currently, USD/JPY is around 154.58. Short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest it could fall below 150. The BOJ’s rate hikes are positive for Yen, but if global arbitrage unwinds or geopolitical tensions (Taiwan Strait, Middle East) escalate, Yen could weaken by 2-5%.

Recommended approach: Divide your exchange plan into 3-4 parts, each time converting 50,000 to 150,000 NT, to spread out FX risk. If you catch a window where the NT dollar depreciates (e.g., due to central bank policy adjustments), you’ll have a better chance.

What to do after exchanging Yen? Don’t let it sit idle

If it’s just for travel, spend it directly. But if you’ve exchanged Yen for investment purposes, leaving it idle is a waste.

4 ways to actively use Yen:

1. Yen fixed deposit: Most stable. E.SUN and Taiwan Bank offer foreign currency accounts starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. Exchanging 48,000 Yen for a 50,000 NT deposit for one year can earn an extra 700-850 NT.

2. Yen savings insurance: Medium-term holding. Cathay and Fubon Life offer Yen savings insurance with guaranteed interest rates of 2-3%, approaching 5% over 6 years. Suitable for those seeking fixed income.

3. Yen ETFs: Growth-oriented. Yuanta 00675U, 00703 track Yen indices; you can buy fractional shares via brokerages, diversify risk, and benefit from Yen appreciation long-term.

4. Forex swing trading: Highest risk but potential reward. Trade USD/JPY or EUR/JPY directly on forex platforms, requiring skill and risk tolerance.

Quick FAQs

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

Cash rate is the rate banks offer for physical cash (banknotes and coins), paid on the spot but at a worse rate (1-2% spread). Spot rate is the market’s T+2 settlement rate used for electronic transfers and interbank settlements, closer to international market prices. In short: cash rate is slow but expensive; spot rate is faster and cheaper.

Q: How much Yen do I get for 10,000 NT?

Using the current 4.85 rate, 10,000 NT = about 48,500 Yen. At the spot rate 4.87, it’s about 48,700 Yen—difference of about 200 Yen (~40 NT).

Q: What ID do I need for counter exchange?

ID card + passport; foreigners need passport + residence permit. If booking online, also bring transaction notification. Under 20 need parental accompaniment; large amounts over 100,000 NT may require source of funds declaration.

Q: Is there a daily withdrawal limit at ATMs?

Yes. Taiwan Bank card limit is 150,000 NT per day; CTBC Bank is 120,000 NT; E.SUN is 50,000 NT (ATM withdrawal). Credit cards have higher limits. Post-2025, many banks have reduced digital account limits to 100,000 NT/day. To avoid issues, consider spreading withdrawals or using your own bank card to avoid 5 NT cross-bank fee per transaction.

Summary: How to exchange most wisely

Instead of obsessing over which method is “cheapest,” clarify your needs—

• Urgent cash for travel: online currency exchange + airport pickup, lowest cost and convenient.
• Invest in Yen: online exchange into foreign currency account, stagger entries, then transfer into deposits or ETFs.
• Urgent cash needs: foreign currency ATM, available 24/7, no waiting.
• Most secure: bank counter, pay a bit more for peace of mind.

Finally, flexible Yen denomination combinations are crucial. Never exchange all your money into large Yen bills (like 10,000 Yen notes) at once, only to find you have no small change for drinks or small purchases.

In conclusion, staggered exchange, avoid leaving Yen idle, and choose the right method to save costs—these are the keys to smart Yen exchange.