Comprehensive Guide to Yen Exchange: Using the Right Method Can Save Over 1,000

December 2025, the NT dollar against the Japanese Yen surged to 4.85, leading to a sharp increase in people exchanging for Yen. But did you know? Exchanging 50,000 NT dollars using the wrong method could cost you an extra 1,500 yuan, while choosing the right method might save you 300 yuan.

Today, we not only tell you how to exchange, but also help you see the real costs of each method—including bank counter exchange, online remittance, foreign currency ATMs, and even tracking the HKD-JPY exchange rate trend—to help you seize the most cost-effective timing.

Is exchanging for Yen really worth it?

Many Taiwanese only consider Yen as “pocket money for travel,” but it’s much more than that.

For travel and daily needs, Japan relies heavily on cash (only 60% credit card penetration), and purchasing agents, online shopping, studying abroad all require Yen. More importantly, the Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). When stock markets fall or geopolitical risks rise, funds flow into Yen for safety—during the Russia-Ukraine war in 2022, Yen appreciated 8% in a week, while Taiwan stocks dropped 10%.

For Taiwanese investors, exchanging Yen isn’t just for leisure; it can also hedge against Taiwan stock market volatility. Plus, Japan maintains ultra-low interest rates (0.5%) with a yield spread of up to 4% over USD, leading many investors to use Yen for arbitrage trading, closing positions when risks increase and buying back later.

In short: now is not only the time to exchange, but also to strategically allocate.

How is Yen appreciation? Is now a good entry point?

As of December 10, 2025, the NT dollar to Yen rate is 4.85, up 8.7% from the beginning of the year at 4.46. Looking at the HKD-JPY trend, Yen remains in a strong zone overall.

But this doesn’t mean “a one-time full exchange” is cost-effective. There are two reasons:

1. The Bank of Japan is about to raise interest rates
Governor Ueda Kazuo recently made hawkish comments, pushing market expectations to 80%, with a rate hike to 0.75% expected on December 19 (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. This supports Yen’s strength.

2. Short-term volatility risk is significant
USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now. It may rebound to 155 in the short term, but medium to long-term forecasts suggest below 150. If used for investment, arbitrage positions may fluctuate 2-5% when closed.

Advice: stagger your exchanges—don’t convert all at once. This helps average costs and reduce risks.

Four methods of currency exchange, detailed cost breakdown

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

Bring cash NT dollars to a bank branch or airport counter to buy Yen notes. Simple to operate, but using the “cash selling rate” (1-2% worse than spot rate) makes it the most costly.

Example from Taiwan Bank on December 10: Cash selling rate is 0.2060 NT$/Yen (meaning 1 NT$ = 4.85 Yen). Exchanging 50,000 NT$ results in a loss of about 1,500-2,000 NT$.

Suitable for: Small urgent cash needs, unfamiliar with online operations, airport emergencies.

Method 2: Online remittance, withdrawal at counter or ATM — better rates, flexible batching

Use bank app or online banking to transfer NT$ into a foreign currency account at the “spot selling rate” (about 1% better than cash selling rate). If you need cash, go to counter or foreign currency ATM, but there will be a currency conversion fee (starting at 100 NT$).

For example, E.SUN Bank: exchanging 50,000 NT$ online yields about 500-1,000 NT$ savings compared to in-branch, but cash withdrawal incurs an additional 100-200 NT$ fee.

Key advantage: allows gradual entry, buying at low points (when NT$/Yen < 4.80), significantly lowering average costs.

Suitable for: Experienced forex investors, planning long-term Yen holdings or converting into fixed deposits/ETFs.

Method 3: Online currency purchase, pick-up at airport or designated branch — the most cost-effective travel plan

No need to open a foreign currency account. Just book online via bank website, specify currency, amount, pick-up branch, and date. After completing, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with 14 Taiwan Bank locations at Taoyuan Airport (including 2 open 24 hours).

Taiwan Bank “Easy Purchase” online remittance: no fee (pay with Taiwan Pay, only 10 NT$), with about 0.5% rate advantage. Exchanging 50,000 NT$ costs only about 300-800 NT$.

Main benefit: lock in exchange rate before departure, pick up cash directly at the airport, no queues.

Disadvantage: requires advance booking (1-3 days), cannot change branch on short notice.

Suitable for: Well-planned travelers with fixed departure dates.

Method 4: Foreign currency ATM withdrawal — 24/7 convenience, location is key

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen cash. Available 24/7, cross-bank fee only 5 NT$. But only about 200 units nationwide, with fixed denominations (1,000/5,000/10,000 Yen), and cash may run out during peak times.

Fubon Bank foreign currency ATM: withdraw Yen from NT$ account, daily limit 150,000 NT$, no remittance fee.

Cost estimate: exchanging 50,000 NT$ costs about 800-1,200 NT$ in losses.

Suitable for: Those who don’t have time to visit banks, need emergency cash, or travel frequently.

Quick reference table for the four methods

After exchanging Yen, don’t let your money “sit idle”

If you already have Yen, don’t leave it unused. Given current interest rates, consider these four options:

1. Yen fixed deposit: Most stable
E.SUN, Taiwan Bank, etc., offer foreign currency accounts starting from 10,000 Yen, with annual interest rates of 1.5-1.8%.

2. Yen insurance policies: Medium-term lock-in
Cathay Life, Fubon Life savings insurance, with guaranteed rates of 2-3%.

3. Yen ETFs (00675U, 00703): Growth-oriented allocation
Yuanta 00675U tracks Yen index, with 0.4% annual management fee, available as fractional shares via broker apps.

4. Forex swing trading: Active gains
Trade USD/JPY or EUR/JPY directly on forex platforms, with long/short positions, 24-hour trading. Benefits include low capital requirements, but higher risks.

Though Yen is a safe haven, its two-way fluctuations are unavoidable. For travel, fixed deposits are safest; for investment ambitions, ETFs or swing trading offer more opportunities.

Common questions answered quickly

Q. What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical bills/coins, for immediate cash exchange, but it’s 1-2% worse than the spot rate, usually with higher fees.
Spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers and import/export, closest to international market prices, but involves waiting for settlement.

Q. How much Yen do I get for 10,000 NT$?
Using Taiwan Bank’s December 10 cash selling rate of 4.85: 10,000 NT$ × 4.85 ≈ 48,500 Yen.
Using spot rate 4.87: about 48,700 Yen. Difference only about 200 Yen (~40 NT$).

Q. What do I need to bring for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit.
If booked online, also bring transaction notice.
Large amounts (>100,000 NT$) may require source declaration.
Under 20 years old need parental accompaniment.

Q. What’s the daily withdrawal limit at foreign currency ATMs?
From October 2025, limits are generally reduced to 100,000-150,000 NT$ per day.
CTBC: equivalent to 120,000 NT$/day; Taishin: 150,000 NT$/day; E.SUN: 150,000 NT$/day.
Use your own bank card to avoid cross-bank fee of 5 NT$.

Final reminder

Yen is no longer just “pocket money for travel,” but an asset with hedging and investment value. Whether for travel or hedging, following the principles of “batch exchange” and “don’t leave money sitting idle” can minimize costs and maximize returns.

The easiest way for beginners is “Taiwan Bank online purchase + airport pickup” or “foreign currency ATM.” After familiarization, gradually move into fixed deposits, ETFs, or even swing trading. This not only makes travel more economical but also adds a layer of asset protection during global market fluctuations.

Don’t wait—now is the time to strategize.