Japanese Yen Exchange Showdown: NT$4.85 for 1 Yen, Is Withdrawing Foreign Currency from ATM Really the Fastest?

In December 2025, the Taiwan dollar against the Japanese yen reached a level of 4.85, and many people started considering exchanging for yen. But do you know? Exchanging 50,000 TWD using the wrong method could result in a loss of 1,500 to 2,000 NT dollars. Today, we will break down the four most common yen exchange channels in Taiwan to help you find the truly cost-effective way.

Why should you pay attention to the yen now?

The yen is not just a foreign currency for travel. From an investment perspective, it is one of the three major safe-haven currencies in the world (USD, Swiss Franc, Yen). Taiwanese often exchange yen to hedge risks during significant fluctuations in the Taiwan stock market. Plus, the Bank of Japan is about to raise interest rates (expected to increase to 0.75% on December 19), which makes the yen more attractive.

This year, the Taiwan dollar has faced considerable depreciation pressure, rising from 4.46 at the start of the year to 4.85 now, an appreciation of 8.7%. In other words, those who exchanged earlier have already gained from the exchange rate difference. So, exchanging yen now is less about traveling abroad and more about asset allocation.

4 yen exchange methods with significant cost differences

Many believe that exchanging yen can be done simply at banks, but in reality, the handling fees and exchange rate differences across channels can directly eat into your wallet.

Method 1: Bank counter cash exchange — the most traditional but also the most expensive

Walk into a bank or airport branch with cash in TWD and exchange for yen cash on the spot. It’s simple, safe, but has an invisible cost: banks offer a “cash selling rate,” which is 1-2% worse than the international market rate.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, was 0.2060 TWD per yen (which translates to 4.85 yen per TWD). Some banks also charge handling fees. Exchanging 50,000 TWD would result in a loss of about 1,500 to 2,000 NT dollars.

If it’s just for urgent airport needs, this method is acceptable. But for planned currency exchange, it’s definitely not the best choice.

Reference cash exchange rates at various banks (2025/12/10):

• Taiwan Bank: 0.2060 TWD/yen, no handling fee
• Mega Bank: 0.2062 TWD/yen, no handling fee
• E.SUN Bank: 0.2067 TWD/yen, 100 NT per transaction
• Cathay United Bank: 0.2063 TWD/yen, 200 NT per transaction

Method 2: Online exchange, then withdraw cash — an advanced choice

Use bank apps or online banking to convert TWD into yen and deposit into a foreign currency account. The bank uses the “spot selling rate,” which is about 1% better than the cash rate. Later, you can withdraw cash at the bank counter or foreign currency ATMs, but additional handling fees may apply.

The advantage is that you can monitor exchange rate trends, and buy in batches when rates are low (e.g., when TWD/JPY drops below 4.80), averaging your costs. For those investing in yen, a foreign currency account is very useful, and you can transfer funds into yen fixed deposits (currently 1.5-1.8% annual interest) to earn interest.

Cost-wise, exchanging 50,000 TWD results in a loss of about 500 to 1,000 NT dollars, which is cheaper than counter exchange.

Disadvantage: You need to open a foreign currency account first; withdrawing cash cross-bank may incur handling fees of 5 to 100 NT dollars.

Method 3: Online currency settlement, then pick up at the airport — the best pre-departure plan

This is an underrated method. No need for a foreign currency account. Just fill in the currency, amount, branch, and date on the bank’s official website, complete the transfer, and then bring your ID and transaction notice to pick up the cash. Taiwan Bank and Mega Bank both offer this service.

The best part is Taiwan Bank’s “Easy Purchase” online settlement with no handling fee (pay with Taiwan Pay for only 10 NT), and the exchange rate is also 0.5% better. You can also reserve a branch at Taoyuan Airport for pickup, with 14 locations available, two of which are open 24 hours.

Order a day or two before departure, and you can pick up cash directly at the airport, saving time and effort. The cost for 50,000 TWD is about a 300 to 800 NT loss, making it one of the most cost-effective options.

Disadvantage: Requires advance reservation (at least 1-3 days), and pickup time is limited by bank hours. The selected branch cannot be changed on short notice.

Method 4: Withdraw yen at foreign currency ATMs — 24/7 convenience

Use a chip-enabled bank card to withdraw yen cash at foreign currency ATMs. Available 24 hours, not limited by bank hours. Deducts directly from your TWD account with only a 5 NT cross-bank fee, much cheaper than other methods.

E.SUN Bank’s foreign currency ATMs have a daily withdrawal limit of 150,000 NT, with no currency exchange fee. If you decide to go out spontaneously, no need to prepare in advance—you can withdraw anytime.

However, there are limitations: about 200 ATMs nationwide, with fixed denominations (1,000/5,000/10,000 yen). During peak times (like airport holidays), cash may run out. Don’t wait until the last minute to withdraw, or you might miss out.

Cost-wise, exchanging 50,000 TWD at ATMs results in a loss of about 800 to 1,200 NT, between counter and online settlement costs. But if you have no time to plan ahead, ATM withdrawal is the most practical solution.

Practical comparison of the four methods’ costs

Suppose you want to exchange 50,000 TWD; see how much each method would lose:

Is it really cost-effective to exchange yen now? Batch strategy is key

As of December 10, 2025, the TWD/JPY rate is 4.85. Since mid-year, the demand for currency exchange among Taiwanese has grown by 25%, mainly due to travel recovery and hedging needs.

But here’s the point: exchanging yen now is advantageous, but don’t do it all at once.

The reason is that the yen is currently in a fluctuation zone. The Fed’s rate cut cycle has begun, which could support the yen; but the Bank of Japan’s rate hikes could also push the yen higher. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term, it might return to 155, but medium to long-term, it’s expected to stay below 150.

There’s also a risk of closing arbitrage trades, which could cause 2-5% volatility. The smartest approach is to buy in batches. For example, exchange 20,000 this week, another 20,000 next week, and adjust the last 10,000 based on the rate, effectively reducing risk.

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

Many people just leave the yen they exchanged sitting in their accounts, which is a huge waste. Although yen is a safe-haven currency, it can also generate interest.

Yen fixed deposits: The most stable choice. Both E.SUN Bank and Taiwan Bank offer this, starting from 10,000 yen, with annual interest rates of 1.5-1.8%.

Yen insurance policies: For medium-term holders, consider Cathay or Fubon life savings insurance, which guarantees 2-3% interest.

Yen ETFs: For higher growth potential, look at ETFs tracking the yen index, like Yuanta 00675U. You can buy fractional shares via broker apps, suitable for regular investment.

Forex trading: If you’re interested in swing trading, you can trade USD/JPY or EUR/JPY directly on forex platforms, 24/7, with small capital. This is a classic way to capture exchange rate fluctuations, allowing both long and short positions.

Quick Q&A

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

Cash rate is the rate banks offer for physical bills or coins, convenient for immediate cash exchange, but usually 1-2% worse than the spot rate, plus handling fees, making it less cost-effective. Spot rate is the rate in the forex market for settlement within two business days, mainly used for electronic transfers, offering better rates close to the market price.

Q: How much yen can 10,000 TWD buy?

Based on Taiwan Bank’s rate on December 10, 2025, about 4.85 (1 TWD = 4.85 JPY), 10,000 TWD can buy approximately 48,500 yen. Using the spot rate (about 4.87), it’s roughly 48,700 yen—about 200 yen difference.

Q: What do I need to bring to the bank for currency exchange?

For counter cash exchange, bring your ID and passport. Foreigners need their passport and residence permit. Companies need business registration documents. For online reservations, bring transaction notices. Minors under 20 need a parent’s accompaniment; amounts over 100,000 TWD may require source of funds declaration.

Q: How much can I withdraw at foreign currency ATMs daily?

Different banks have different limits. CTBC Bank and Taishin Bank have daily limits equivalent to 120,000-150,000 NT; E.SUN Bank’s limit is also around 150,000 NT. Other banks usually lower, around 20,000 NT per transaction. After 2025, most banks have adjusted daily withdrawal limits to 100,000-150,000 NT. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Yen is not just for travel, but part of asset allocation

Yen has transcended its travel use and now serves as a hedge and investment asset. Whether you plan to visit Japan next year or want to hedge against the Taiwan dollar depreciation by switching into yen, mastering “batch exchange + transferring into fixed deposits or ETFs” can minimize costs and maximize returns.

For beginners, start with “Taiwan Bank’s online settlement + airport pickup” or “foreign currency ATM withdrawal.” Based on your needs, transfer yen into fixed deposits, ETFs, or swing trading. This way, traveling becomes more cost-effective, and you gain an extra layer of protection amid global market fluctuations.