Must-see before buying Japanese Yen: NT$ to JPY below 4.85, this is the most cost-effective way to exchange

Since the beginning of the year at 4.46, the NT$ to JPY exchange rate has depreciated to 4.85, an appreciation of over 8%. Many people are starting to consider buying yen for investment or travel preparations, but upon inquiry, they find out: the exchange methods differ, and the costs can vary significantly.

Is it really cost-effective to buy yen now?

Brief answer: Yes, but it should be done in batches.

Currently, the yen is fluctuating within a range, and the Bank of Japan is expected to raise interest rates to 0.75% on December 19 (a 30-year high). USD/JPY has fallen from 160 at the start of the year to 154.58. The US rate cut cycle combined with Japan’s rate hike expectations provide support for the yen. In the medium to long term, the exchange rate may stabilize below 150, with short-term fluctuations possibly reaching 155.

For investors, the yen, as one of the world’s three major safe-haven currencies (alongside USD and CHF), is particularly suitable for hedging risks during Taiwan stock market volatility. However, closing arbitrage trades may cause short-term fluctuations of 2-5%, so entering in batches and reducing single-transaction costs is key.

Four channels to buy yen, with vastly different costs

For example, purchasing 50,000 TWD worth of yen, the loss can range from 300 to 2,000 TWD depending on the method.

1. Bank counter exchange: the most traditional but most expensive

Bringing cash to a bank or airport to exchange for yen cash uses the “cash selling rate,” which is 1-2% worse than the spot rate. As of December 10, 2025, the Bank of Taiwan’s cash selling rate is about 0.2060 TWD per yen (4.85 yen/TWD), resulting in a loss of about 1,500-2,000 TWD.

Some banks also charge an additional 100-200 TWD handling fee:

• Bank of Taiwan, Mega International, CTBC, First Commercial Bank: no fee
• E.SUN, E.SUN Bank, Fubon: 100-200 TWD per transaction
• Cathay United Bank: 200 TWD per transaction

When to use: For urgent, on-the-spot needs at the airport or if you want a quick solution. Not recommended as the main method.

2. Online exchange + cash pickup: the best for batch entry

Use the bank app to exchange at the “spot selling rate” (about 1% better than cash selling rate) into a foreign currency account, then withdraw cash when needed. Loss is about 500-1,000 TWD.

Advantages include observing exchange rate trends, allowing you to buy in batches at low points (e.g., when TWD/JPY drops below 4.80) to average costs. E.SUN, Bank of Taiwan, Mega International support this method. Withdrawal fees start from about 100 TWD, with interbank fees of 5-100 TWD.

When to use: For those experienced in forex investment who want to build positions gradually at low points.

3. Online currency exchange + airport pickup: the best pre-departure plan

No need to open a foreign currency account. Simply book via Bank of Taiwan’s “Easy Purchase” or Mega International’s website, input amount, branch, date, then bring ID and transaction notification to pick up in person. Loss is only about 300-800 TWD.

Bank of Taiwan’s Easy Purchase allows payment via TaiwanPay with a 10 TWD fee and offers a 0.5% exchange rate discount. Taoyuan Airport has 14 Bank of Taiwan counters (2 open 24 hours), allowing direct pickup at the airport. This is especially convenient for travelers planning ahead.

When to use: For well-planned trips where you want to handle cash in one go before departure.

4. Foreign currency ATMs: the ace for urgent needs

Use a chip-enabled bank card to withdraw yen directly from foreign currency ATMs, which operate 24/7. E.SUN Bank’s foreign currency ATMs allow yen withdrawal from TWD accounts, with a daily limit of 150,000 TWD, no exchange fee, and only 5 TWD for interbank transactions. Loss is about 800-1,200 TWD.

Disadvantages include limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 yen), and potential cash shortages during peak times. Don’t wait until the last minute to withdraw.

When to use: When you don’t have time to visit a bank or have urgent needs.

Overall advice: what’s the most cost-effective way to buy yen?

For budgets of 50,000-200,000 TWD: Use online exchange to buy in batches, then top up with ATM withdrawals. This allows buying at low points and reduces cash handling risks.

For travelers: Online currency exchange + airport pickup, which offers the lowest fees and best rates, avoiding extra bank visits.

For long-term investors: Exchange online into a foreign currency account, then consider transferring into yen fixed deposits (annual interest rate 1.5-1.8%) or yen ETFs (like 00675U, with an annual management fee of 0.4%).

After buying yen, don’t let your money sit idle

Once you have yen, consider these prudent options:

Yen fixed deposit: E.SUN, Bank of Taiwan foreign currency accounts, starting from 10,000 yen, with an annual interest rate of 1.5-1.8%. Over a year, 10,000 yen can earn an extra 150-180 yen.

Yen insurance policy: Purchase savings insurance with a guaranteed rate of 2-3%, suitable for medium-term holding (3-5 years).

Yen ETFs: Buy Yuanta 00675U or other yen index ETFs via brokerage apps, suitable for dollar-cost averaging.

Forex swing trading: Capture USD/JPY or EUR/JPY fluctuations, but involves higher risk and requires basic skills.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate applies to physical cash transactions, typically 1-2% worse than the spot rate, but very convenient for immediate exchange. Spot rate is used for electronic transfers (T+2 settlement) and offers better rates, but takes two business days.

Q: How much yen can I get with 10,000 TWD?
As of December 10, 2025, using Bank of Taiwan’s rate of 4.85, 10,000 TWD can buy about 48,500 yen. Using the spot rate of 4.87, it can buy about 48,700 yen, a difference of roughly 200 yen (about 40 TWD).

Q: What do I need to bring for counter exchange?
Bring ID and passport. Under 20s need a parent present. For online booking, also bring the transaction notification. For amounts over 100,000 TWD, you may need to declare the source of funds.

Q: What is the daily limit for foreign currency ATMs?
Post-October 2025, many banks have strengthened anti-fraud measures:

• Taishin Bank: equivalent to 150,000 TWD/day
• E.SUN Bank: equivalent to 150,000 TWD/day
• CTBC: equivalent to 120,000 TWD/day
  Renminbi has a special limit of 20,000 RMB per transaction. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final reminder

Yen is no longer just pocket money for travel; it also has hedging and investment value. By mastering the two principles of “batch buying” and “not letting the money sit idle after exchange,” you can minimize costs and maximize returns.

Beginners are advised to start with “Bank of Taiwan online exchange + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or swing trading based on needs. This way, you not only save on travel expenses but also add a layer of protection during global market fluctuations.