The Japanese Yen exchange wave rises: TWD 4.85 hits a new high. Is it time to enter now or wait for a better opportunity?

The exchange rate of NT$ to Japanese Yen just surged to 4.85. What does this number represent? It means that with NT$50,000, you can now get 48,500 Yen, which is an 8.7% gain compared to the exchange rate of 4.46 at the beginning of the year. As the Bank of Japan’s rate hike expectations heat up and the NT$ faces depreciation pressure, the Yen has shifted from “pocket money for travel” to the preferred safe-haven asset. But don’t rush to exchange all at once, because the key to your next decision lies in choosing the right currency exchange method.

4 Ways to Exchange Currency, Cost Difference Over 2 Times

The easiest trap to fall into is thinking all banks offer the same exchange rate. In reality, just between Taiwan Bank and Taipei Fubon Bank, the cash selling rate differs by 0.0009 (NT$0.045), which can add up significantly at large amounts.

Counter cash exchange is the most traditional method and also the most expensive. For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/Yen (i.e., NT$1 = 4.85 Yen), plus some banks charge a handling fee of NT$100-200 per transaction. Exchanging NT$50,000 could lose NT$1,500-2,000. This method is only suitable for emergency airport cash needs.

Online exchange combined with in-person withdrawal improves the rate, using the spot selling rate (about 0.2062 NT$/Yen), reducing costs by about 1%. However, additional cash withdrawal fees (usually NT$100-200) still eat into some gains. Suitable for those with foreign currency accounts planning to hold Yen deposits long-term.

Online currency settlement is a dark horse. Taiwan Bank’s “Easy Purchase” service is basically fee-free (using Taiwan Pay costs only NT$10), with a more favorable rate about 0.5% better, lowering costs to NT$300-800. The best part is you can schedule pickup at airport branches—Taoyuan Airport has 14 Taiwan Bank locations, 2 open 24 hours, perfect for travelers. The only downside is needing to book 1-3 days in advance.

Foreign currency ATMs are time-saving tools, available 24/7, with only NT$5 cross-bank fee. But this convenience comes at a price—limited locations (about 200 nationwide), often out of cash during peak times, with fixed denominations of Yen only in NT$1,000/5,000/10,000. Suitable for busy professionals who can’t visit banks.

Below is a cost comparison for exchanging NT$50,000:

Is Now a Good Time to Exchange? Understand These 3 Signals

First Signal: The Bank of Japan’s rate hike schedule. Governor Ueda recently issued hawkish comments, with market expectations of a 0.25 bps hike at the December 19 meeting to 0.75% (a 30-year high), which will push Japanese bond yields (already at a 17-year high of 1.93%). Rate hikes usually attract capital inflows into the currency.

Second Signal: Narrowing US-Japan interest rate gap. The US dollar maintains higher interest rates, while the Yen’s rate remains low. This arbitrage (currently about 4.0%) has attracted traders to borrow Yen to buy USD for investment. If global risk sentiment improves, these trades will unwind, potentially causing the Yen to weaken short-term by 2-5%.

Third Signal: NT$ depreciation pressure. Amid global capital reallocation, the NT$ faces depreciation expectations. Meanwhile, the Yen, as one of the three major safe-haven currencies (alongside USD and Swiss Franc), becomes more attractive. For Taiwanese investors, this presents a chance to buy Yen in batches.

Conclusion: Exchanging now is profitable, but avoid converting all at once. It’s recommended to split into 3-4 batches, averaging the exchange rate in the 4.80-4.90 range. If for travel, current rates are already reasonable, no need to wait further.

After Exchanging Yen, Keep Your Money Working

Once you have Yen, different goals suggest different ways to grow your money:

Conservative plan: Yen fixed deposit
E.Sun Bank, Taiwan Bank, and others offer foreign currency accounts with fixed deposits, annual interest rates of 1.5-1.8%, starting from 10,000 Yen. This is the best choice for lazy investors—risk is nearly zero.

Mid-term plan: Yen insurance policy
Cathay, Fubon Life offer savings insurance with guaranteed interest rates of 2-3%, locking in for 3-6 years, suitable for medium-term funds.

Growth plan: Yen ETFs
Yuanta 00675U tracks Yen indices, with an annual management fee of 0.4%. You can buy fractional shares via brokerage apps for dollar-cost averaging. This diversifies exchange rate risk while participating in Japan’s capital market.

Aggressive plan: Forex trading
USD/JPY, EUR/JPY pairs are traded 24/7 on platforms like Mitrade, allowing long and short positions. Suitable for experienced traders who can capitalize on short-term fluctuations, but with higher risk.

By the way, if you’re also watching GBP/NT$ or other major currency pairs, you’ll notice Yen’s safe-haven role is unique—during global stock declines, Yen usually rises, while USD depends on US domestic factors. This is why Yen is a popular hedge against Taiwan stock market risks.

Practical Checklist: Quick Start for Beginners

One week before travel: Visit Taiwan Bank or Mega International Bank online, schedule currency exchange, and specify airport branch pickup.

3 days before departure: Confirm reservation number, prepare ID and transaction notification.

On departure day: Arrive at the airport branch 2 hours before departure to pick up Yen.

Daily needs: For emergency cash, find nearby foreign currency ATMs or counters (some 7-ELEVEN stores also offer services).

Long-term investment: Transfer excess Yen beyond travel budget into fixed deposits or ETF accounts.

This way, you not only enjoy your trip more cost-effectively but also add a layer of protection during global market turbulence.