Japanese Yen exchange cost revealed: Which of the 4 methods is the cheapest?

In December 2025, the NT$ to JPY exchange rate has surpassed 4.85, marking a key level in nearly a year. Compared to 4.46 at the start of the year, the yen has appreciated by 8.7%, reflecting more than just travel enthusiasm—it’s also about global investors reallocating to safe-haven assets. But did you know? Choosing the wrong currency exchange method can eat up over a thousand NT$ in spread and fees.

Why is the Japanese Yen so hot right now?

The yen’s appeal has gone beyond just “travel pocket money.” From an economic perspective, the yen, as one of the world’s three major safe-haven currencies (alongside the USD and Swiss Franc), tends to appreciate counter-cyclically during market turbulence. During the Russia-Ukraine conflict in 2022, the yen surged 8% in a single week, successfully offsetting a 10% drop in the stock market.

At the same time, the Bank of Japan’s policy shift has become a focus. With Governor Ueda’s recent hawkish tone, the market expects an 80% chance of interest rate hikes to 0.75% at the December 19 meeting (a 30-year high), and Japanese government bond yields have hit 1.93%, a 17-year high. This signals important opportunities for arbitrage traders and risk-hedging investors.

Additionally, under the long-term depreciation pressure on NT$, converting some assets into yen has become a standard allocation move for many Taiwanese investors.

4 currency exchange methods, big cost differences

Many think there’s no skill involved in exchanging yen, but just choosing the right channel can save hundreds to over a thousand NT$. Based on actual rates in December 2025, we analyze each method.

Method 1: 24-hour foreign currency ATM self-service withdrawal

Foreign currency ATMs are the most flexible option. Using a chip-enabled debit card, you can withdraw anytime, with a cross-bank fee of only NT$5 (deducted from your NT$ account), available 24/7.

For example, the E.SUN Bank foreign currency ATM allows a daily limit of NT$150,000 for yen withdrawals with no extra currency exchange fee. There are about 200 units nationwide, mainly in urban areas and transportation hubs.

Advantages: Instant cash, high flexibility, low cross-bank costs.
Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 yen), possible stock shortages during peak times (like airports).
Estimated cost (NT$50,000): about NT$800–1,200 loss.
Suitable for: Urgent needs, busy professionals without time for bank visits.

Method 2: Online currency purchase + airport pickup

This is the best choice for planned travelers. Reserve currency exchange online via bank websites, specify amount, branch, and date, then complete transfer and pick up with ID and transaction notice.

Taiwan Bank’s “Easy Purchase” online exchange is fee-free (NT$10 if paid via Taiwan Pay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, allowing you to withdraw before departure.

Advantages: Better rates, often no fees, airport pickup option.
Disadvantages: Need to pre-book (1-3 days), pickup limited to bank hours.
Estimated cost (NT$50,000): NT$300–800 loss.
Suitable for: Well-planned trips with confirmed departure dates.

Method 3: Online exchange + in-branch or ATM withdrawal

Use online banking or app to convert NT$ into yen and deposit into a foreign currency account, enjoying the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, withdraw at a branch or foreign currency ATM, but this incurs spread and fee (from NT$100).

E.SUN Bank’s app allows currency exchange, and cash withdrawal fees are the difference between spot and cash rates, with a minimum NT$100. Ideal for long-term investors monitoring rates and entering positions gradually at low points.

Advantages: 24/7 operation, dollar-cost averaging, relatively favorable rates.
Disadvantages: Need to open a foreign currency account in advance, cash withdrawal fees apply.
Estimated cost (NT$50,000): NT$500–1,000 loss.
Suitable for: Experienced forex traders, those planning yen deposits.

Method 4: Traditional in-branch cash exchange

The most conventional way—bring NT$ cash to a bank branch or airport counter to exchange for yen notes. Simple but uses the “cash selling rate” (about 1-2% worse than spot), making it the most expensive.

For example, Taiwan Bank’s December 10, 2025 rate: cash selling rate is about NT$0.2060 per yen (roughly 4.85 yen per NT$). Some banks also charge fixed handling fees.

Comparison (as of December 10, 2025):

Advantages: Safe, full denominations, staff assistance.
Disadvantages: Worst rates, limited hours, possible fees.
Estimated cost (NT$50,000): NT$1,500–2,000 loss.
Suitable for: Small amounts, urgent or unfamiliar with online methods.

Quick comparison of 4 methods

What you should know about exchange rates

Cash Rate vs. Spot Rate

Cash Rate is the rate banks offer for physical cash exchanges, suitable for travel or in-person transactions. It’s convenient but typically 1-2% worse than the spot rate, plus higher fees.

Spot Rate is the foreign exchange rate settled within T+2 in the FX market, used for electronic transfers, import/export, etc. It’s close to international market prices but takes two business days to settle.

For small personal exchanges, this difference can amount to NT$200–500 per NT$50,000.

How much yen for NT$10,000?

The calculation is simple: Yen amount = NT$ amount × current rate

For example, December 10, 2025, Taiwan Bank rates:

• Cash selling rate 4.85: NT$10,000 × 4.85 = 48,500 yen
• Spot selling rate 4.87: NT$10,000 × 4.87 = 48,700 yen

Difference of 200 yen (about NT$40). While small per transaction, repeated exchanges accumulate savings.

What to bring for in-branch exchange?

Taiwanese citizens need to bring ID card + passport; foreigners need passport + residence permit. For online reservations, also bring transaction notice.

Special cases: under 20 need parental consent; large exchanges over NT$100,000 may require source of funds declaration.

Historical USD exchange rate background: Why yen is worth watching

While USD remains dominant in global FX markets, its historical volatility reminds us of currency risks. Over the past five years, USD/JPY ranged from 90 to a high of 160, then back to 154.58, with significant swings ripe for arbitrage.

In comparison, yen’s volatility is large but its safe-haven nature is more stable. Regardless of USD fluctuations, the yen tends to perform better during global risk events. This is why many investors, amid NT$ depreciation, choose yen as a portfolio hedge.

After exchanging yen, don’t let it sit idle

If you’ve already exchanged yen, here are 4 ways to generate returns:

1. Yen fixed deposit (conservative)
E.SUN, Taiwan Bank, etc., offer foreign currency accounts with minimum NT$10,000 deposit, annual interest 1.5–1.8%. Suitable for risk-averse investors.

2. Yen insurance policies (mid-term)
Cathay, Fubon life savings insurance with guaranteed 2–3% interest, plus protection, fit medium-term allocation.

3. Yen ETFs (growth)
Examples: Yuanta 00675U, 00703, tracking yen indices, available via broker apps for fractional or regular investment. Management fee around 0.4%, diversifies risk.

4. Forex trading (swing trading)
Trade USD/JPY, EUR/JPY directly. Pros: long/short, 24-hour trading, low capital threshold, suitable for experienced traders.

Is now a good time to exchange yen?

Short answer: Yes, but consider staggered entries.

NT$ to yen at 4.85 is relatively high. Technical analysis suggests USD/JPY may oscillate around 155 short-term, with a medium-long-term target below 150. After BOJ rate hikes, yen may face arbitrage unwinding, with short-term volatility of 2–5%.

Suggested strategies:

1. Gradual entry: Avoid all at once; split into 3–5 batches for average cost.
2. Monitor key levels: If NT$ to yen drops below 4.80, consider adding positions.
3. Use for different purposes: Separate travel funds from investment funds; transfer part into deposits or ETFs.
4. Hedging: Combine with Taiwan stock positions; yen appreciation can offset stock declines.

Quick tips for small beginners

If your budget is NT$50,000–200,000, we recommend simple options:

• Travel: Taiwan Bank online exchange + airport pickup (cost NT$300–800)
• Urgent needs: E.SUN foreign currency ATM (cost NT$800–1,200)
• Long-term investment: Online exchange + yen fixed deposit (cost NT$500–1,000)

This balances cost control and operational simplicity.

Summary

The yen has evolved from a travel currency to a risk-hedge and investment tool. Following the principles of “staggered exchange + active management” can minimize costs and maximize gains. Whether planning a trip to Japan next year or hedging against NT$ depreciation, choosing the right exchange channel is half the success.