Japanese Yen Exchange to 2025 Full Guide: 4 Methods with Cost Differences Over 1,500 Yuan, Did You Choose the Right One?

This year, the NT dollar to Japanese Yen exchange rate has reached 4.85. The surge in travel to Japan and risk hedging needs have made the Yen the most frequently exchanged foreign currency by Taiwanese people. But did you know? Choosing the wrong method to exchange 50,000 NT dollars into Yen could cost you an extra 1,500 NT dollars in unnecessary expenses. We will explain the latest exchange methods, cost differences, and exchange rate trends all in one go.

Why has exchanging Yen become a hot topic now?

The Yen is not just “pocket money” for traveling abroad; there are three deeper implications behind it:

Travel expenditure aspect: Most stores in Tokyo, Osaka, and Okinawa still prefer cash (credit card penetration is only 60%). Purchasing agents, Japanese online shopping, studying abroad, and part-time work all require Yen payments.

Financial hedging aspect: The Yen has long been one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, while the stock market fell 10%, making it a natural hedging tool. For investors holding Taiwanese stocks, allocating Yen adds an extra layer of protection.

Arbitrage and interest rate differential: The Bank of Japan has maintained ultra-low interest rates (only 0.5%) for a long time, but recently, Governor Ueda and others have turned hawkish, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high). With Japanese government bond yields reaching a 17-year high of 1.93%, and the USD/JPY interest rate differential still at 4.0%, Yen becomes an asset that can hedge risks and earn interest rate spreads.

In comparison, AUD to TWD exchange rates are relatively stable, but with smaller fluctuations, making them less effective for hedging than Yen.

4 Practical Yen Exchange Methods Compared

Many people think there’s only one way to exchange Yen through banks, but the cost differences are much greater than expected. Here’s the ranking based on “benefit efficiency”:

Most cost-effective: Online currency exchange + Airport pickup

No need for a foreign currency account. Simply fill in the amount and pickup branch on the bank’s official website, make an appointment, and then bring your ID to pick up. Taiwan Bank’s “Easy Purchase” and Mega International Bank offer this service, especially convenient at the airport (Taoyuan Airport Taiwan Bank has 14 locations, 2 open 24 hours).

Cost: For exchanging 50,000 NT dollars, estimated loss is only 300-800 NT dollars
Advantages: About 0.5% better exchange rate, often no handling fee, convenient airport pickup with reservation
Disadvantages: Need to book 1-3 days in advance, pickup only during bank hours

Suitable for travelers with detailed plans and ample time before departure.

Second choice: Foreign currency ATM cash withdrawal

Use a chip-enabled financial card to withdraw Yen cash at foreign currency ATMs, available 24/7, with only 5 NT dollars cross-bank fee. E.SUN Bank’s foreign currency ATMs allow up to 150,000 NT dollars equivalent per day, with no currency exchange fee.

Cost: Loss of 800-1,200 NT dollars
Advantages: Anytime, anywhere withdrawal, direct deduction from TWD account, low cross-bank fees
Disadvantages: Limited locations (about 200 nationwide), fixed denominations (only 1,000/5,000/10,000 Yen), risk of stockouts during peak hours

Note: Japan ATM services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). It’s recommended not to wait until the last minute, especially during busy airport times when cash may run out.

Moderate option: Online currency exchange + Over-the-counter withdrawal

Use online banking app to convert TWD to Yen at the “spot selling rate” (about 1% better than cash rate), deposit into a foreign currency account, then withdraw cash at the counter or ATM. E.SUN Bank charges a minimum of 100 NT dollars for Yen cash withdrawal.

Cost: Loss of 500-1,000 NT dollars
Advantages: 24-hour currency exchange, can average costs over multiple entries, relatively favorable exchange rate
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply

This method suits those with forex investment experience planning to hold Yen long-term. You can also invest in Yen fixed deposits (currently 1.5-1.8% annual interest) or Yen ETFs.

Alternative: Over-the-counter cash exchange

The most traditional way—simply bring NT cash to a bank or airport to exchange for Yen cash. Easy but most costly, as banks use “cash selling rate” (1-2% worse than spot rate) plus possible handling fees.

Cost: Loss of 1,500-2,000 NT dollars
Advantages: Safe, reliable, full denominations, assistance from staff
Disadvantages: Worst exchange rate, limited to bank hours (weekday 9:00-15:30), possible extra fees

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 NT$/Yen (1 NT$ = 4.85 Yen). Some banks charge fixed handling fees:

Use as a backup plan, e.g., for urgent airport needs.

Is it worthwhile to exchange Yen now? Staged entry is the safest

Short-term outlook: The current TWD/JPY rate is 4.85, up from 4.46 at the start of the year, an 8.7% appreciation, making investment gains quite attractive. In the second half of the year, Taiwan’s currency demand increased by 25%, mainly due to travel recovery and hedging needs.

Medium-term trend: The US is entering a rate-cut cycle, which benefits the Yen. The Bank of Japan is expected to hike rates to 0.75% in December, a 30-year high. Japanese government bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from 160 at the start of the year to around 154.58 now. Short-term, it may rebound to 155, but medium to long-term, it’s expected to stay below 150.

Recommended strategy: Yen will fluctuate both ways. Short-term arbitrage positions or geopolitical conflicts (Taiwan Strait/Middle East) may temporarily push the rate down. Do not exchange all at once; instead, stagger your purchases to average costs and avoid buying at the high point. Combining methods like “online currency exchange + airport pickup” or “foreign currency ATM” can control costs and maintain flexibility.

After exchanging Yen, how to hold it? Don’t let it sit idle earning interest

Once you’ve exchanged Yen, don’t let the money sit idle. Four major investment options suitable for small investors:

1. Yen fixed deposit (most stable): Starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. Deposit online into bank foreign currency accounts like E.SUN or Taiwan Bank.

2. Yen insurance policies (medium-term holding): Buy Yen savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%.

3. Yen ETFs (growth-oriented): Such as Yuanta 00675U or 00703, tracking Yen indices, with annual management fees of 0.4%. Can be bought as fractional shares via brokerage apps for dollar-cost averaging.

4. Forex trading (swing trading): Trade USD/JPY or EUR/JPY, with 24-hour long/short options. Suitable for experienced investors to capture exchange rate fluctuations.

While Yen is a safe-haven asset, global arbitrage unwinding risks still exist. Investing in Yen ETFs can diversify risk better than holding cash or fixed deposits alone.

Common questions about Yen exchange

Q: What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical cash exchange, suitable for travel, with the advantage of immediate delivery but worse rates (1-2% below spot). Spot rate is the international market price settled within T+2, used for electronic transfers or import/export, offering better rates but requiring waiting.

Q: How much Yen can I get for 10,000 NT dollars?
Using the formula【Yen amount = NT dollars × current exchange rate】. On December 10, 2025, Taiwan Bank’s cash selling rate is 0.2060 NT$/Yen, so 10,000 NT$ ≈ 48,500 Yen. Using the spot rate 0.2055, it’s about 48,700 Yen—roughly 200 Yen difference.

Q: What do I need to bring for over-the-counter exchange?
Taiwanese citizens: ID card + passport. Foreigners: passport + residence permit. If booked online (online currency exchange), also bring transaction notification. Large amounts (over 100,000 NT$) may require source of funds declaration.

Q: Are there limits on foreign currency ATM withdrawals?
From October 2025, new rules apply. Different banks have different limits:

• CTBC: 120,000 NT$ per transaction and per day
• Taishin: 150,000 NT$ per transaction and per day
• E.SUN: 50,000 NT$ per transaction, 150,000 NT$ per day (including card charges)
  It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary

Yen is no longer just travel pocket money; it’s a multi-functional asset with hedging, interest, and investment value. Whether you plan to visit Japan next year or hedge Taiwanese stocks against Yen fluctuations, the key is to follow the “staged exchange + post-exchange allocation” principle.

Beginners are recommended to start with “Taiwan Bank online currency exchange + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or swing trading based on needs. This way, you can save on costs, enjoy more flexibility, and be better protected during global market volatility.