Under the depreciation of the New Taiwan Dollar, the exchange cost difference with the Japanese Yen is so significant—Comparison of 4 practical channels

The NT$ to JPY exchange rate has fallen to 4.85, appreciating 8.7% since the beginning of the year. People planning to travel abroad or hedge assets are starting to gear up. But do you know? Just choosing the wrong exchange channel can cost you an extra NT$2000. Today, we will compare four methods of exchanging JPY so you can see exactly where every penny goes.

Why is it worth exchanging for JPY? From travel to asset allocation

When it comes to foreign currency investments, JPY always comes first in Taiwanese minds, not just because people love visiting Japan.

From a daily perspective, cash still dominates consumption in Tokyo, Osaka, and Hokkaido (credit card penetration is only 60%), and JPY is needed for studying abroad, purchasing, and working holidays. But what’s truly noteworthy is—JPY is globally recognized as one of the three major safe-haven currencies. During the Russia-Ukraine conflict in 2022, the stock market dropped 10%, but the JPY appreciated 8%, demonstrating the power of “safe-haven assets.”

Plus, with the Bank of Japan’s interest rate hike imminent (Governor Ueda Kazuo expects a rate increase to 0.75% on December 19, a 30-year high), the long-standing low-interest status of the yen as a “funding currency” is changing. For Taiwanese investors, amid the continuous depreciation of the NT$, allocating JPY can hedge against Taiwan stock volatility and participate in profit opportunities from the rate hike cycle.

Four major exchange channels in practice: Cost differences are astonishing

Many think exchanging JPY is just a matter of going to the bank, but when considering exchange rates, handling fees, and time restrictions, costs can vary by 20-30%.

1. In-branch cash exchange—convenient but the most expensive

Bringing NT$ cash directly to a bank or airport counter to exchange for JPY cash is the simplest method, but it uses the “cash selling rate” instead of the “spot rate,” with a difference of about 1-2%. For example, Taiwan Bank’s rate on December 10, 2025, was 1 JPY = NT$0.2060 (meaning NT$1 = 4.85 JPY), and some banks charge an additional NT$100-200 handling fee.

NT$50,000 on this route would lose about NT$1500-2000, making it the most costly. Bank operating hours are limited (weekday 9:00-15:30), which is not suitable for last-minute exchanges. Unless you only realize you need to exchange just before departure, this method is generally not recommended.

2. Online foreign exchange + airport pickup—best choice before traveling

Many open foreign currency accounts but don’t realize they can use online banking to settle the exchange and pick up at designated branches. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay NT$10 via Taiwan Pay), and the rate can be discounted by 0.5%, with almost no extra cost. The key is—appointments can be made to pick up at 14 Taiwan Bank branches at Taoyuan Airport, including 2 that operate 24 hours.

Exchanging NT$50,000 here costs about NT$300-800 less, making it much more cost-effective. The only inconvenience is needing to book 1-3 days in advance, but for planned travelers, this is the best current option.

3. Foreign currency ATM withdrawal—quick for urgent needs

Using a chip-enabled financial card at a foreign currency ATM to withdraw JPY directly, open 24/7, deducts only NT$5 cross-bank fee from your NT$ account. E.SUN Bank’s foreign currency ATM has a daily withdrawal limit of NT$150,000 equivalent, with no currency exchange fee. Denominations are fixed (1000, 5000, 10000 JPY). Although there are only about 200 ATMs nationwide, they are sufficient for emergencies.

NT$50,000 costs about NT$800-1200, a moderate expense. The downside is that during peak times (especially at airports), cash may run out, so don’t wait until the last minute.

4. Online foreign currency account exchange—advanced option for forex investors

Directly convert NT$ to JPY within a bank app and deposit into a foreign currency account, using the spot sell rate (about 1% better than cash selling rate), avoiding physical cash. If you want to withdraw cash later via counter or ATM, handling fees will apply. This method suits those who want to buy in stages and take advantage of low points.

Exchanging NT$50,000 costs about NT$500-1000, and you can also leverage this to invest in JPY fixed deposits (current annual interest rate 1.5-1.8%), making it the top choice for those with forex experience.

Is now a good time to exchange JPY? Staggered entry is the key

The NT$ to JPY rate is 4.85, up 8.7% from the beginning of the year’s 4.46. In the second half of the year, Taiwan’s forex demand increased by 25%, mainly driven by travel recovery and hedging needs.

But JPY is currently in a volatile range. During the US rate cut cycle, JPY has gained support, but short-term arbitrage closing could trigger 2-5% fluctuations. USD/JPY has fallen from 160 at the start of the year to 154.58 now, with a medium- to long-term forecast approaching below 150.

Key advice: stagger your exchanges, don’t convert everything at once. You can choose to open a foreign currency account and buy in small amounts when the NT$ to JPY rate drops below 4.80, averaging your cost to the lowest. After exchanging JPY, don’t let it sit idle without earning interest—consider fixed deposits, ETFs, or forex trading.

Benefits of opening a foreign currency account—better rates, more flexible investments

Many don’t realize that opening a foreign currency account actually costs less. E.SUN Bank, Taiwan Bank, and Mega Bank support online account opening, with a minimum deposit of 10,000 JPY. After opening, several practical benefits include:

Better exchange rates. For the same NT$50,000, using spot rates in a foreign currency account offers a 1-1.5% discount compared to cash selling, saving NT$200-300.

Fixed deposit returns. JPY fixed deposits have an annual interest rate of 1.5-1.8%. 1 million JPY for a year can earn an extra 15,000-18,000 JPY, earning passively.

Investment flexibility. After opening a foreign currency account, you can adjust and transfer funds into JPY ETFs (like Yuanta 00675U, 00703), JPY insurance policies, or even try forex trading USD/JPY.

Lower exchange costs and more investment options are why more savvy investors are opening foreign currency accounts first.

Next steps after exchanging JPY: keep your money working

After receiving NT$50,000 or NT$100,000 in JPY, instead of letting it sit idle, consider moving it into:

JPY fixed deposits: the safest, with an annual rate of 1.5-1.8%, suitable for conservative investors.

JPY ETFs: tracking the JPY index (like Yuanta 00675U, with 0.4% annual management fee), suitable for dollar-cost averaging and risk diversification.

JPY insurance policies: medium-term holdings, with Cathay or Fubon savings insurance offering guaranteed interest rates of 2-3%.

Forex swing trading: capturing USD/JPY, EUR/JPY fluctuations, with 24-hour trading, long/short options, and small capital requirements.

Common myths answered

What’s the difference between cash exchange rate and spot rate? Cash rate is the bank’s buy/sell price for physical notes, usually 1-2% worse than the international market. Spot rate is the electronic trading price (T+2 settlement), closer to the actual market rate, thus cheaper.

How much JPY do I get for NT$10,000? Using the cash selling rate of 4.85, about 48,500 JPY; with the spot selling rate of 4.87, about 48,700 JPY—roughly 200 JPY (about NT$40) difference.

What do I need to bring for in-branch exchange? ID card + passport (if under 20, parental consent). For large amounts (over NT$100,000), you may need to declare the source of funds.

Are there withdrawal limits at foreign currency ATMs? After the 2025 new rules, limits vary by bank. Taishin Bank, CTBC, and others allow NT$150,000 equivalent per day with their own cards, or NT$20,000 per transaction with other banks. E.SUN Bank’s limit is NT$150,000 per day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Use staggered strategies to make JPY your asset

JPY is no longer just travel pocket money but a tool for hedging Taiwan stock risks and participating in rate hikes. The key is choosing the right exchange channels—using online foreign currency exchange or staged conversions via foreign currency accounts can save 30-40% in costs, then transfer the JPY into fixed deposits or investments. This not only hedges risks but also enhances gains.

Whether you plan to visit Japan next year or want to add an extra layer of protection amid NT$ depreciation, remember the two principles: “staggered exchange” and “don’t leave it idle after converting.” Minimize costs and maximize returns.