How to save money on Japanese Yen exchange? Understand 4 entry methods and the latest exchange rates in one go

December 10, 2025, the Taiwan dollar against the Japanese yen breaks through the 4.85 level, appreciating 8.7% from 4.46 at the beginning of the year. For Taiwanese who plan to travel to Japan, purchase Japanese goods on behalf of others, or allocate hedging assets, now is a good time to observe. But before deciding to exchange, you need to know: Using the wrong method to exchange yen can cost you thousands more in exchange rate differences and fees.

This article will start from practical aspects, telling you what to bring when withdrawing money from the bank, how to choose among four exchange channels, and whether now is a good time to exchange yen.

What to bring when withdrawing yen cash from the bank? Get these documents ready first

When exchanging yen cash at a bank or airport counter, preparation is key. Taiwanese must bring their ID + passport, while foreigners should bring their passport + residence permit. If exchanging on behalf of a company, proof of business registration is required.

If you have made an online currency exchange reservation in advance (such as Taiwan Bank’s “Easy Purchase” service), you also need to bring the transaction notification when collecting. A special reminder: those under 20 must be accompanied by a parent and sign a consent form; large exchanges over NT$100,000 may require a source of funds declaration form.

These details may seem trivial, but missing a document on-site can mean a wasted trip. It’s recommended to confirm the branch’s operating hours (most are 9:00-15:30 on weekdays) and whether an appointment is needed beforehand.

Where does the yen come from? Understanding the difference between spot exchange rate vs cash exchange rate

Many people don’t understand why there are multiple exchange rates listed by banks. Simply put, the cash exchange rate is the transaction price for physical banknotes, applicable when you go to the bank to exchange cash. The downside is that it’s usually 1-2% worse than the international market rate, plus possible fees, making it the most expensive overall.

The spot exchange rate is used between banks, import/export companies, or online account transfers, settled in T+2 (two business days), and is closer to the international market price, offering a clear advantage.

For example: based on Taiwan Bank’s rate on December 10, 2025, the cash selling rate is 0.2060 (about NT$1 = 4.85 yen), but the spot selling rate might be 0.2063 (about NT$1 = 4.87 yen). The difference for NT$50,000 is about 200-300 yen. It may seem small, but from another perspective, this is the fee you can save.

How to get yen into your pocket? Practical comparison of 4 exchange channels

Option 1: ATM withdrawal of foreign currency — fastest, but with some nuances

Using a chip-enabled financial card at a foreign currency ATM to withdraw yen cash, available 24/7. Deducts NT$5 cross-bank fee from your TWD account, with fixed denominations of 1,000, 5,000, or 10,000 yen per withdrawal. E.SUN Bank’s foreign currency ATMs have a daily limit of NT$150,000; CTBC Bank and Taishin Bank are NT$120,000 and NT$150,000 respectively.

Advantage is flexibility in timing and low cost. Disadvantage is that there are only about 200 such ATMs nationwide, often sold out during peak hours (e.g., Taoyuan Airport), and you cannot specify denominations. If you need yen urgently, this is a good option; but to ensure availability, plan ahead.

Suitable for: those who have no time to visit the bank and need quick access for amounts between NT$50,000-150,000.

Option 2: Cash exchange at the counter — most secure, but most expensive

Walk into a bank or airport branch with NT$ cash and exchange on the spot for yen cash. The process is transparent, with tellers counting bills face-to-face, and denominations can be freely chosen (1,000, 5,000, 10,000 yen).

For example, Taiwan Bank’s rate on December 10, 2025, is 0.2060 for cash selling; Mega Bank is 0.2062; CTBC Bank is 0.2065. Some banks also charge an additional NT$100-200 handling fee. NT$50,000 exchanged costs about NT$1,500-2,000, making it the most expensive among the four methods.

Operational restrictions: only during banking hours, depending on teller availability.

Suitable for: those who prefer not to use online methods, or for small amounts and last-minute airport needs.

Option 3: Online currency exchange with airport or branch pickup — best pre-departure plan

No need to open a foreign currency account. Simply fill in the amount, pick a pickup branch and date on the bank’s website, pay online, and bring the transaction notification and ID to pick up cash at the counter. Taiwan Bank’s “Easy Purchase” offers this service; paying via Taiwan Pay costs only NT$10, much cheaper than in-person cash exchange, with about 0.5% better exchange rate.

The best part is the ability to pre-book airport pickup. Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours. NT$50,000 costs estimated NT$300-800, a moderate to low cost.

Disadvantages: requires prior reservation (at least 1-3 days), limited to banking hours, cannot change branch at the last minute.

Suitable for: travelers with fixed itineraries who want to withdraw cash directly at the airport.

Option 4: Online exchange, deposit or withdrawal from account — flexible but requires a foreign currency account

Using bank app or online banking, convert NT$ to yen at the “spot sell” rate, depositing into an external currency account. To withdraw cash, additional fees apply (difference between buy/sell rates, minimum NT$100), or you can use the foreign currency account for payments in Japan.

E.SUN Bank and Taiwan Bank support this, allowing 24-hour phased purchases at an average cost. Especially suitable for investors wanting to buy in at low points (e.g., when NT$ to yen is below 4.80). NT$50,000 costs about NT$500-1,000, and the yen in the account can be transferred into fixed deposits (annual interest 1.5-1.8%) or used to buy yen ETFs.

Disadvantages: need to open a foreign currency account first (usually free), and cross-bank withdrawals incur additional fees.

Suitable for: those with forex investment experience, planning to hold yen long-term.

Which method is most cost-effective for NT$50,000 to yen?

For budgets between NT$50,000-200,000, the recommended approach is a combination of “online exchange + airport pickup” or “ATM withdrawal” to maximize cost efficiency.

Should I exchange yen now? Trend and risk warnings

Short-term outlook: Bank of Japan Governor Ueda Kazuo’s hawkish comments recently boosted rate hike expectations to 80%, with the December 19 meeting expected to raise rates to 0.75% (a 30-year high). Japanese government bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now, possibly testing 155 in the short term.

Medium to long-term outlook: As the US enters a rate-cut cycle, the yen remains one of the three major safe-haven currencies (alongside USD and CHF), providing protection during global market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering a 10% stock market decline. For Taiwanese investors, holding yen can hedge against Taiwan stock volatility.

Key risks: unwinding of arbitrage trades (e.g., borrowing yen at low interest to buy higher-yield USD), geopolitical conflicts (Taiwan Strait, Middle East) may temporarily weaken the yen. The USD/JPY is expected to stay below 150 in the long run, but short-term fluctuations of 2-5% are normal.

Suggested strategy: stagger your purchases, avoid all-in. For example: 20% at 155-156, 30% at 154, and 50% at 150, gradually averaging the cost.

After exchanging yen, how to utilize it? Four practical options

• Yen fixed deposit: most stable, open an external currency account at E.SUN or Taiwan Bank, minimum NT$10,000 deposit, annual interest 1.5-1.8%
• Yen savings insurance: medium-term holding, Cathay or Fubon Life offers products with guaranteed 2-3% interest
• Yen ETFs (e.g., 00675U, 00703): growth-oriented, can buy fractional shares via broker apps, tracking yen index
• USD/JPY swing trading: advanced, trade currency pairs on forex platforms, two-way 24-hour trading, suitable for risk-tolerant investors

While yen has hedging attributes, it still carries two-way volatility risk. For investment purposes, yen ETFs with 0.4% annual management fee offer diversified risk. For swing trading, monitor daily European and US market rates and central bank statements.

Quick FAQ

Q: How much yen can NT$10,000 buy?
Based on Taiwan Bank’s rate on December 10, 2025, cash sell at 0.2060, NT$10,000 ≈ 48,500 yen; at spot sell 0.2063, ≈ 48,700 yen. Difference of about 200 yen (~NT$40).

Q: When is the best time for yen exchange?
Typically, the bank’s midday (10:30-14:30) rates are more stable; avoid early morning and closing fluctuations. Online exchange can be done 24/7; observe international market prices for low points.

Q: Do I need to fill out a declaration for exchanges over NT$100,000?
Yes. According to anti-money laundering rules, exchanges over NT$100,000 require a source of funds declaration, with supporting documents. The process is straightforward and not too time-consuming.

Q: What is the daily limit for foreign currency ATMs?
Varies by bank. E.SUN: NT$50,000/day (50 banknotes). CTBC and Taishin: NT$120,000-150,000/day. Cross-bank withdrawals depend on card issuer rules. For RMB, the limit is usually NT$20,000.

Yen is no longer just for travel “pocket money,” but also a hedging and investment asset. By mastering the principles of “staggered exchange + immediate allocation,” you can minimize costs and maximize returns whether traveling or investing.