Is it the right time to invest in Japanese Yen? An article explaining the best way to exchange New Taiwan Dollars for Japanese Yen

The NT$ to JPY exchange rate has surged to a critical level of 4.85. This is not just a matter for travelers—the Japanese yen is quietly becoming a new safe haven choice for Taiwanese investors. But what’s the most cost-effective way to exchange? Many people spend extra money without realizing it.

Spot Exchange Rate vs. Cash Exchange Rate, Knowing This Means Half the Win

Many people confuse these two concepts, but they actually determine how much NT$ you need to spend.

Cash Exchange Rate is the buy/sell price banks offer for physical cash (banknotes and coins), applicable for in-person transactions. The downside is obvious—it’s about 1-2% worse than the international market rate (spot rate), plus possible service fees. A single in-branch currency exchange could cost you an extra NT$500-2,000.

Spot Exchange Rate is the price settled in the foreign exchange market T+2, used for electronic transfers or account transactions. Its advantage is that it closely reflects real-time international market prices, saving you enough spread to buy several more meals.

Simple formula: JPY amount = NT$ amount × current exchange rate. For example, using Taiwan Bank as an example, the cash selling rate on the same day is about NT$0.2060/JPY (i.e., NT$1 exchanges for 4.85 JPY), while the spot selling rate can go up to NT$0.2061/JPY (about 4.87 JPY). The small difference adds up over time.

Is Now a Good Time to Exchange in 2025? Let’s Look at the Trend

At the start of the year, NT$ to JPY was about 4.46; now it has risen to 4.85, an appreciation of 8.7% for the year. For investors, the exchange gain is quite significant, especially as the NT$ faces depreciation pressure.

But don’t rush to exchange all at once. The yen is currently fluctuating—supported by the US rate cut cycle, and the Bank of Japan’s rate hike expectations are heating up (an 80% chance of raising to 0.75% by December 19). USD/JPY has fallen from a high of 160 to 154.58, with short-term rebounds possibly to 155, and medium to long-term forecasts below 150.

Key advice: Dollar-cost averaging. Although the yen is one of the world’s three major safe-haven currencies, short-term arbitrage closing risks could cause 2-5% volatility.

Four Major Currency Exchange Channels Fully Explained

Based on the latest 2025 data, the estimated cost for NT$50,000 is as follows—

Option 1: Online currency exchange + Airport pickup (the smartest approach)

Taiwan Bank’s “Easy Purchase” online currency exchange is a hidden gem many overlook. No need to open a foreign currency account—just fill in the amount, branch, and date on their website, and pay with Taiwan Pay, which costs only NT$10 (or free). The exchange rate is also about 0.5% better. Notably, Taoyuan Airport has 14 Taiwan Bank counters, including 2 24-hour branches.

Cost estimate: NT$50,000 roughly loses NT$300-800, the most economical among the four methods.

• Advantages: Well-planned before travel, favorable rates, transparent fees
• Disadvantages: Need to book 1-3 days in advance; pickup time limited to bank hours

Option 2: Foreign currency ATM (best for emergency)

Use a chip-enabled debit card at foreign currency ATMs in banks, available 24/7. Deducts NT$5 cross-bank fee from your NT$ account, and even some banks like Fubon waive currency exchange fees. Daily limit usually around NT$150,000 equivalent.

Cost estimate: NT$50,000 roughly loses NT$800-1,200.

Disadvantages include limited locations (about 200 nationwide), and cash may run out during peak times. Ideal for busy professionals who can’t visit banks frequently.

Option 3: Online exchange + in-branch withdrawal (recommended for forex investors)

Use bank apps or online banking to exchange at spot rates into foreign currency accounts, then withdraw in person or via ATM. Major banks like E.SUN support this, with a currency spread fee (minimum NT$100) at withdrawal.

Cost estimate: NT$50,000 roughly loses NT$500-1,000.

Advantages include 24/7 operation, allowing for dollar-cost averaging. Especially suitable for those investing in yen deposits (annual interest 1.5-1.8%) or yen ETFs.

Option 4: In-branch cash exchange (backup plan)

Bring NT$ cash directly to banks or airports to exchange for JPY banknotes. Denominations are complete (1,000, 5,000, 10,000 JPY), with staff assistance on-site.

Cost estimate: NT$50,000 roughly loses NT$1,500-2,000, the most expensive option.

But for those unfamiliar with online procedures or needing small amounts urgently (like at the airport), it’s still a safe and reliable choice.

Cost Comparison Table of Four Methods

Reference spot rates from various banks in December 2025 (Taiwan Bank at NT$0.2060 best):

• Taiwan Bank: 0.2060 (no fee)
• Taipei Fubon Bank: 0.2069 (NT$100 per transaction)
• E.SUN Bank: 0.2067 (NT$100 per transaction)
• Mega Bank: 0.2062 (no fee)

What to Do After Exchanging Yen? Don’t Let Your Money Sit Idle

Getting yen isn’t the end—making it generate returns is the smart move.

Yen fixed deposit: The most stable, open at Taiwan Bank or E.SUN Bank with foreign currency accounts, starting from NT$10,000, with annual interest rates of 1.5-1.8%.

Yen insurance policies: Medium-term holding strategies, with guaranteed interest rates of 2-3% from Cathay or Fubon Life.

Yen ETFs: Growth options like Yuanta 00675U, tracking yen indices, with only 0.4% annual management fee, and fractional shares available.

Forex swing trading: Trading USD/JPY, EUR/JPY, etc., on forex platforms, with 24-hour bidirectional trading, suitable for capturing exchange rate fluctuations.

The Bank of Japan’s rate hikes are positive for the yen, but global arbitrage closing and geopolitical risks exist. For diversified investment, yen ETFs can spread volatility; for active trading, forex platforms offer low spreads and stop-loss/take-profit tools for advanced players.

Quick FAQs

Q. How much JPY can I get with NT$10,000?
At the current rate of 4.85, about 48,500 JPY. Using the spot rate of 4.87, about 48,700 JPY, a difference of 200 JPY (NT$40).

Q. What do I need to bring for in-branch exchange?
ID card + passport (for locals), passport + residence permit (for foreigners). If booked online, bring transaction notice. Under 20 needs parental consent; amounts over NT$100,000 require source of funds declaration.

Q. What’s the daily withdrawal limit at foreign currency ATMs?
Varies by bank: CTBC around NT$120,000 equivalent, Taishin NT$150,000, E.SUN NT$50,000 (including NT$150,000 debit card limit). Some digital accounts have lower limits (around NT$100,000) due to anti-fraud policies. It’s recommended to use your own bank card to avoid cross-bank fees.

One Sentence Summary

The Japanese yen has upgraded from “travel petty cash” to “hedging + investment asset.” Whether for travel or asset allocation, mastering “batch exchange” and “use after exchange” principles can minimize costs and maximize returns. The top choice for beginners is Taiwan Bank’s online exchange with airport pickup—cost-effective and convenient.