The Japanese Yen exchange rate hits a new high of 4.85, the best time to exchange currency in 2025 has arrived

December 2025, the Taiwanese dollar has already surged to 4.85 against the Japanese yen, a full 8.7% increase from 4.46 at the beginning of the year. If you haven’t exchanged for yen yet, now might be a good time. But the key question is, do you know how to exchange most cost-effectively?

Many people think exchanging yen just means going to the bank to withdraw cash, but the exchange rate difference alone can cost you several cups of bubble tea. Today, we’ll break down the four most common currency exchange channels in Taiwan, helping you quickly find the best option for yourself.

Why should you exchange yen now?

When it comes to foreign currency exchange, most Taiwanese first think of yen. This isn’t just because they love traveling to Japan; in fact, yen is very practical for both daily life and investments.

Essential needs for travel and shopping

Tokyo, Osaka, Hokkaido—many places in Japan still primarily use cash (credit card penetration is only 60%). Besides travel expenses, some rely on purchasing agents and Japanese online auctions as side jobs, often needing to pay directly in yen. Long-term students or working holidaymakers also exchange in advance to avoid costs from sudden fluctuations.

A safe haven in financial markets

Yen, USD, and Swiss Franc are considered the world’s three major safe-haven currencies. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%—showing the power of safe assets. For Taiwanese investors, exchanging yen isn’t just for leisure; it also helps hedge against Taiwan stock market volatility.

Additionally, the Bank of Japan recently increased interest rate hike expectations (Governor Ueda Kazuo’s hawkish remarks, market estimates of a rate hike to 0.75% in December), which could support the yen’s strength in the medium to long term.

The four most common currency exchange channels in Taiwan

Option 1: Over-the-counter cash exchange (traditional but costly)

Bring NT$ to a bank or airport counter to exchange for yen cash—it’s the safest and most direct. But the problem is—cash selling rates are 1-2% worse than market rates, plus possible handling fees, making this the most expensive option.

For example, Taiwan Bank’s cash selling rate on December 10 was NT$0.2060 per yen (i.e., NT$1 exchanges for 4.85 yen). But as shown in the comparison table below, some banks also charge an additional NT$100-200 handling fee.

Suitable for: People unfamiliar with online banking, urgent needs at the airport, small amounts (under NT$5,000).

Option 2: Online currency exchange + cash withdrawal at counter or ATM (advanced)

Use banking app or online banking to convert NT$ into yen and deposit into a foreign currency account, using the spot sell rate (better by about 1% than cash). Then withdraw cash as needed. This allows for phased entry and averaging costs, especially suitable for those who frequently monitor exchange rates.

The downside is you need to open a foreign currency account first, and withdrawing cash incurs an additional NT$100+ fee. However, if you choose ATM withdrawal, the cross-bank fee is only NT$5, making it even cheaper.

This method is especially suitable for short-term investments—E.SUN Bank offers yen fixed deposits with an annual interest rate of 1.5-1.8%, with overnight interest rolling over.

Suitable for: Those with forex investment experience, aiming to profit from exchange rate differences or earn interest via fixed deposits.

Option 3: Online currency exchange + airport pickup (most convenient)

No need to open a foreign currency account. Just fill in the amount, currency, and pickup branch on the bank’s website, then go with your ID and transaction notification to pick up. Taiwan Bank’s “Easy Purchase” also waives handling fees (NT$10 if paid via Taiwan Pay), with a 0.5% exchange rate advantage.

The best part—Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours. Book online the day before your trip, and pick up directly at the airport the next day, saving time.

Suitable for: Well-planned travelers who want to pick up yen directly at the airport.

Option 4: Foreign currency ATM withdrawal (most flexible)

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen cash 24/7, even cross-bank for only NT$5. E.SUN Bank’s foreign currency ATMs allow NT$15 million daily withdrawal limit from a NT$ account, with no currency exchange fee.

The downside is there are only about 200 such ATMs nationwide, and during peak times (like airports or holidays), cash may run out. But if you need cash urgently or have irregular schedules, this is the most flexible option.

Suitable for: Busy professionals who don’t have time to visit banks.

Cost and suitability overview of the four options

Is it worthwhile to exchange yen in 2025? Phased entry is key

The NT$ to yen rate is now 4.85, up over 7% from the start of the year. In the second half, exchange demand surged 25%, mainly due to travel recovery and hedging needs.

But this doesn’t mean you should exchange all at once—yen is still volatile. The US rate hike cycle is approaching, but the Bank of Japan is about to raise rates. USD/JPY has fallen from 160 to 154.58 since the start of the year, likely to fluctuate around 155 in the short term, with a medium-long-term forecast below 150.

Advice for investors: Yen is suitable for hedging Taiwan stocks, but short-term arbitrage closing could cause 2-5% fluctuations. Phased entry and avoiding all-in exchanges are standard risk mitigation strategies.

After exchanging yen, what next? Don’t let your money sit idle with no interest

If you’ve already exchanged yen, how to use it? Here are four options:

1. Yen fixed deposit (conservative) E.SUN and Taiwan Bank offer online foreign currency accounts, with a minimum of 10,000 yen and annual interest rates of 1.5-1.8%. A no-brainer for risk-averse investors.

2. Yen insurance policy (medium-term hold) Fubon and Cathay Life offer savings insurance with guaranteed 2-3% interest, locking in for 3-6 years. If you plan to open an account with Fubon for a policy, remember to bring ID, passport (or residence permit), and seal; large amounts may require source of funds declaration.

3. Yen ETFs (growth-oriented) Yuanta 00675U tracks the yen index, and you can buy fractional shares via brokerage apps, suitable for dollar-cost averaging. Management fee is 0.4%, with higher risk but greater potential returns than fixed deposits.

4. Forex trading (swing/ intraday) Trade USD/JPY or EUR/JPY directly on platforms like Mitrade. 24-hour bidirectional trading, zero commissions, low spreads—ideal for capturing exchange rate movements.

Quick FAQs

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

Cash rate is the price banks offer for physical cash, settled immediately but usually 1-2% worse than the market rate. Spot rate is the foreign exchange market price for settlement within two business days, closer to international rates and more favorable, but requires waiting for settlement. In short, electronic transfers use the spot rate; cash transactions use the cash rate.

Q: How much yen can I get with NT$10,000?

Using the formula: Yen amount = NT$ amount × exchange rate. On December 10, with Taiwan Bank’s cash rate of 4.85, NT$10,000 exchanges for about 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen—roughly 200 yen (about NT$40) difference.

Q: What do I need to bring to exchange currency?

For counter transactions, just bring ID and passport. Foreigners should bring passport and residence permit. If you booked online (like Fubon or Taiwan Bank), also bring transaction notification. Under 20 years old need parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

In 2025, regulations vary by bank. CTBC allows NT$ equivalent of NT$120,000 per day, Taishin NT$150,000, E.SUN NT$150,000 (including debit). Cross-bank limits depend on the issuing bank, generally NT$20,000-50,000 per transaction. During peak times, cash may be scarce; it’s recommended to withdraw in multiple transactions.

Summary: Yen is no longer just for travel

Yen has evolved from a simple “travel pocket money” to an asset with hedging and investment value. Whether you’re planning to visit Japan next year or hedge against NT$ depreciation, mastering “phased exchange + post-exchange value addition” can minimize costs and maximize gains.

For beginners, start with Taiwan Bank’s online exchange + airport pickup or foreign currency ATM, then move into fixed deposits, ETFs, or small forex trades based on your needs. This way, you can enjoy more cost-effective trips abroad and add a layer of protection during global market turbulence.