JPY Exchange Guide 2025: Comparing the Costs of 4 Major Channels, Smart Currency Exchange Saves Thousands

The NT$ to JPY exchange rate has reached 4.85, and the topic of exchanging for Japanese yen is heating up again. Instead of blindly queuing at banks, it’s better to understand the cost differences among the four major currency exchange channels—just choosing the right method can save you a nice meal.

The “Business Opportunity” Behind Exchanging for Yen

Many people think that currency exchange is just a passive choice for traveling abroad, but the Japanese yen has long surpassed its tourism currency role.

Everyday Life: Japan remains a cash society, with ongoing demand for purchasing cosmetics, clothing, and anime merchandise. Many Taiwanese regularly pay in yen. When traveling, merchants in Tokyo, Osaka, and Hokkaido still prioritize cash payments.

Investment Aspect: The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s stable economy and low debt profile attract funds during market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, successfully buffering stock market declines. For Taiwanese investors, holding yen is not just for fun but also a tool to hedge against Taiwan stock risks.

Additionally, the Bank of Japan maintains ultra-low interest rates (below 0.5%) for a long time, making the yen a “financing currency”—many arbitrage traders borrow low-interest yen to buy higher-yield USD (the USD/JPY interest rate differential can reach 4.0%), then close positions when risks rise.

Four Common Ways for Taiwanese to Exchange for Yen

Method 1: Foreign Currency ATMs—Most flexible but most limited

Using a chip-enabled bank card at an overseas currency ATM to withdraw yen cash instantly. Supports 24-hour operation, cross-bank withdrawal fee of only 5 NT$, directly debited from a TWD account with no currency exchange fee. Cathay United Bank’s daily withdrawal limit is equivalent to 150,000 NT$.

However, locations are sparse (about 200 nationwide), denominations are fixed (1,000/5,000/10,000 yen), and during peak times (especially airports), cash is often sold out. It’s highly temporary but less planned.

Advantages: Flexible, real-time, low cross-bank fees
Disadvantages: Limited locations, fixed denominations, no cash during peak hours
Estimated Cost (50,000 NT$): 800-1,200 NT$
Suitable for: Urgent needs, no time for in-person visits

Method 2: Online Currency Purchase + In-Person Pickup—Most cost-effective with prior planning

No need for a foreign currency account. Simply select currency, amount, pickup branch, and date on the bank’s official website. After transfer, bring ID and transaction notification to pick up. Taiwan Bank’s “Easy Purchase” online currency purchase has no handling fee (pay via Taiwan Pay, only 10 NT$), with an exchange rate advantage of about 0.5%.

The key advantage is the ability to reserve at airport locations like Taoyuan Airport (Taiwan Bank has 14 branches at airports, including 2 24-hour branches), suitable for pre-trip planning.

Advantages: Better exchange rates, often no handling fee, convenient airport pickup
Disadvantages: Need to book 1-3 days in advance, pickup limited to business hours
Estimated Cost (50,000 NT$): 300-800 NT$
Suitable for: Planned travelers

Method 3: In-Person Currency Exchange—Most traditional but most expensive

Bring cash directly to a bank or airport counter for exchange. Simple operation, full denominations, staff assistance. Uses “cash selling rate” (1-2% worse than spot rate), plus some banks charge handling fees, making it the most costly.

Taiwan Bank’s cash selling rate in December 2025 is about 0.2060 NT$/JPY (i.e., 1 NT$ = 4.85 yen). Some banks charge an additional 100-200 NT$ handling fee. This is only a backup option, suitable for urgent airport needs or small amounts.

Advantages: Safe, reliable, no online operation needed
Disadvantages: Poor exchange rate, limited operating hours, additional fees
Estimated Cost (50,000 NT$): 1,500-2,000 NT$
Suitable for: Inexperienced with online transactions, small urgent needs

Method 4: Online Currency Exchange + ATM Withdrawal—Preferred by investors

Use online banking app to convert NT$ into yen and deposit into a foreign currency account, using “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or foreign currency ATMs, incurring exchange spread and withdrawal fees (from about 100 NT$).

E.SUN Bank and others offer this service, with a minimum deposit of 10,000 yen, allowing for phased entry to average costs. Suitable for investors monitoring exchange rates and buying in batches at low points.

Advantages: 24/7 operation, averaging costs over multiple entries, favorable rates
Disadvantages: Need a foreign currency account, withdrawal fees apply
Estimated Cost (50,000 NT$): 500-1,000 NT$
Suitable for: Experienced forex traders, frequent foreign currency account users

Summary of Costs for the 4 Methods

(Based on bank rates as of December 2025; actual costs vary with exchange rate fluctuations)

Is Now a Good Time to Exchange Yen? Market Observation

As of December 2025, the NT$ to JPY rate is 4.85, up about 8.7% from 4.46 at the start of the year. In the second half, Taiwan’s currency exchange demand increased by 25%, mainly due to travel recovery and hedging needs.

From the USD to JPY perspective, the USD/JPY rate has fallen from a high of 160 at the start of the year to 154.58. Short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest further weakening below 150. The Bank of Japan’s recent hawkish comments have boosted rate hike expectations, with a possible increase to 0.75% at the December 19 meeting (a 30-year high). Japanese government bond yields have hit a 17-year high.

Phased operations are the current strategy. Yen as a safe-haven currency is suitable for hedging, but short-term arbitrage closing may cause 2-5% volatility. Whether for investment or travel, multiple entries are better than a one-time full exchange.

Advanced Options After Exchanging Yen

Make the yen “work” rather than idle waste.

Yen Fixed Deposit: Stable, with E.SUN and Taiwan Bank offering accounts starting at 10,000 yen, annual interest rates of 1.5-1.8%.

Yen Insurance Policies: Medium-term holding, with Cathay and Fubon Life offering savings insurance with guaranteed rates of 2-3%.

Yen ETFs: Growth-oriented, such as Yuanta 00675U tracking the yen index, available for fractional investment via broker apps, with an annual management fee of 0.4%.

Yen Swing Trading: Direct trading of USD/JPY or EUR/JPY, both long and short, 24/7 operation, suitable for capturing short-term volatility.

Common Questions Clarified

What’s the difference between cash exchange rate and spot rate?

Cash exchange rate applies to physical cash transactions, settled immediately, with a 1-2% spread. Spot rate is used for electronic transfers (T+2 settlement), closer to international market prices and more favorable.

How much yen for 10,000 NT$?

Using Taiwan Bank’s cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen, a difference of roughly 200 yen (about NT$40).

What to bring for in-person currency exchange?

ID card + passport. For online reservations, also bring transaction notification. Large amounts (over 100,000 NT$) may require declaration of source of funds.

What’s the daily limit for foreign currency ATM withdrawals?

Post-2025 regulations, many banks have lowered the daily limit to 100,000-150,000 NT$. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees.

Conclusion

The yen is no longer just “pocket money for travel” but also an asset with hedging and investment value. By following the two main principles of “phased exchange + immediate allocation,” starting with online currency purchase or foreign currency ATMs, then moving into fixed deposits, ETFs, or swing trading, you can reduce costs and add a layer of protection during global market turbulence.