How big is the difference between TWD and TWD exchange rates? Actual testing of the costs of 4 Japanese Yen exchange channels

December 10, 2025, the NT dollar to Japanese Yen exchange rate reaches 4.85, meaning 1 NT dollar can be exchanged for 4.85 Yen. The number of people wanting to exchange Yen has started to increase, but do you know? For the same 50,000 NT dollars, depending on the exchange method chosen, you might end up exchanging over 2,000 Yen less in the end. This difference comes from the discrepancy between NT dollar and foreign exchange rates.

What is the NT dollar exchange rate difference? Explained clearly once and for all

Many people think all banks offer the same exchange rate, but in reality, the rate difference can be as high as 1-2%, which is the core of the NT dollar exchange rate discrepancy.

Specifically, banks provide two types of Yen exchange rates:

Cash exchange rate (the worst one you see)

• Refers to the bank’s buy/sell rate for physical cash
• About 1-2% worse than the official spot rate
• May include an additional handling fee of 100-200 NT dollars
• Exchanging 50,000 NT dollars results in a loss of about 1,500 NT dollars just from this difference

Spot exchange rate (used for online transactions)

• The real trading rate in the foreign exchange market
• T+2 settlement (takes effect after 2 business days)
• No cash handling costs, but withdrawal incurs additional fees
• Same 50,000 NT dollars can exchange for 200-500 more Yen

The 4 most common ways Taiwanese people exchange Yen

Based on the latest data, the main methods for exchanging Yen in Taiwan are divided into four categories. Each has different costs; we compare them directly with real data:

Method 1: Walk into a bank or airport counter, cash transaction on-site

This is the most traditional approach: bring cash NT dollars to a bank branch or airport counter to exchange for Yen cash.

Cost analysis (based on 50,000 NT dollars):

• Taiwan Bank cash selling rate: 0.2060 NT$/Yen (equivalent to 4.85 Yen/NT$)
• Mega Bank: 0.2062 NT$/Yen
• E.Sun Bank: 0.2067 NT$/Yen + 100 NT$ handling fee per transaction
• Actual cost loss: about 1,500-2,000 NT dollars

Advantages: Safe and reliable, immediate cash, full denominations, staff assistance
Disadvantages: Worst exchange rate, limited business hours (Weekdays 9:00-15:30), possible extra charges
Suitable for: Urgent airport needs, unfamiliar with online methods, small amounts for temporary use

Method 2: Use app online, then withdraw cash at bank or ATM

First, via bank app or online banking, transfer NT dollars into a foreign currency account (using a better spot rate), then go to a branch or foreign currency ATM to withdraw cash.

Cost analysis:

• Online exchange rate: about 0.2055 NT$/Yen (1% better than cash rate)
• Withdrawal fee: 100-200 NT$ (or based on exchange rate difference)
• Interbank withdrawal fee: 5-50 NT$
• Actual cost loss: about 500-1,000 NT$

Advantages: 24/7 operation, better rate than counter, can average costs over multiple entries
Disadvantages: Need to open a foreign currency account first, withdrawal incurs extra fees, more complex process
Suitable for: Investors with forex experience, long-term Yen holders, those wanting to do Yen fixed deposits

Method 3: Online reservation, pick up at designated bank or airport

This has become increasingly popular in recent years. Reserve via bank website, specify branch and pickup date, the bank locks in the rate. You bring ID and notification to pick up.

Cost analysis:

• Taiwan Bank “Easy Purchase” online foreign exchange: no handling fee (pay only 10 NT$ via TaiwanPay)
• Mega Bank offers similar service
• Rate advantage: about 0.5% better than counter
• Actual cost loss: about 300-800 NT$

Advantages: Better rates, often no handling fee, can reserve at 24-hour airport counters, planned approach
Disadvantages: Need to book 1-3 days in advance, pickup time limited by bank hours, branches cannot modify reservation
Suitable for: Travelers with time before departure, those wanting to pick up at the airport

Method 4: Chip-enabled financial card withdrawal at foreign currency ATMs

This is the fastest method. Use any bank’s chip card at foreign currency ATMs 24/7, withdraw Yen cash directly from your NT dollar account, cross-bank fee only 5 NT$.

Cost analysis:

• E.Sun Bank foreign currency ATM: daily limit of 150,000 NT$, no exchange fee
• Deduct from NT account: only 5 NT$ cross-bank fee
• Exchange rate: automatic real-time market rate
• Actual cost loss: about 800-1,200 NT$ (mainly from exchange rate difference)

Advantages: Instant withdrawal, 24/7, high flexibility, low cross-bank fee
Disadvantages: Limited locations (only about 200), fixed denominations (1,000/5,000/10,000 Yen), peak times may run out of cash
Suitable for: No time to visit bank, urgent needs, frequent travelers

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

We organize the four methods into a table, calculating costs based on 50,000 NT$:

Conclusion: The best value is online foreign exchange combined with airport pickup, saving about 1,200-1,700 NT$.

How is the current Yen exchange rate environment?

Recent exchange rate review:

• Early 2025: NT$ to Yen about 4.46
• December 10, 2025: NT$ to Yen about 4.85
• Year-to-date increase: 8.7%, indicating Yen has appreciated

Short-term outlook:

The Bank of Japan (BOJ) has signaled a rate hike. Governor Ueda recently indicated a hawkish stance, with market expectations of a rate increase to 0.75% at the December 19 meeting (30-year high). Japanese government bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from 160 to around 154.58.

Impact on investors:

• Short-term volatility of 2-5%, USD/JPY may test 155
• Medium to long-term trend favors below 150
• Yen’s safe-haven attribute increases, but arbitrage unwinding carries risks

Advice: Do not exchange all at once; better to enter in 2-3 installments to reduce risk.

After exchanging Yen, where should the money go?

Once you have Yen, instead of letting it sit idle with zero interest, consider these small investment options:

1. Yen fixed deposit (conservative)

• Minimum 10,000 Yen
• Annual interest rate 1.5-1.8% (E.Sun, Taiwan Bank)
• Suitable if you don’t need the funds for 3-12 months

2. Yen insurance policy (mid-term)

• Cathay, Fubon Life offer Yen savings insurance
• Guaranteed rate 2-3%, plus expected returns
• Best held for 3-10 years

3. Yen ETFs (growth-oriented)

• Yuanta 00675U, Cathay 00703 tracking Yen index
• Management fee about 0.4% annually
• Can do fractional share dollar-cost averaging, suitable for swing trading

4. Forex trading (speculative)

• Directly trade USD/JPY or EUR/JPY
• 24-hour trading, long and short positions
• Requires higher risk tolerance

Quick FAQ

Q: Is the cash exchange rate really 1-2% worse than the spot rate?
A: Absolutely correct. Cash rates are bank quotes for physical bills, including circulation, custody, and authentication costs, thus worse than international spot rates. For 50,000 NT$, this 1-2% difference amounts to 1,000-2,000 NT$.

Q: What documents are needed to exchange Yen at the counter?
A: Citizens: ID + passport; foreigners: passport + residence permit. Under 20 needs parent’s accompaniment; amounts over 100,000 NT$ may require source of funds declaration.

Q: What is the maximum daily withdrawal at foreign currency ATMs?
A: Post-2025 regulations, most banks limit to about 100,000-150,000 NT$ equivalent per day. CTBC about 120,000, Taishin 150,000, E.Sun 150,000. Plan ahead to avoid peak-time cash shortages.

Q: How to calculate how many Yen I get for 10,000 NT$?
A: Yen amount = NT$ amount × current rate. At 4.85, 10,000 NT$ ≈ 48,500 Yen; at 4.87 spot rate, about 48,700 Yen.

Summary: The optimal path for exchanging NT$ to Yen

Yen is no longer just pocket money for travel; it also has hedging and investment value. To minimize costs and maximize returns, follow these principles:

1. Use staggered exchange: Don’t convert all at once; do 2-3 installments to reduce exchange rate risk
2. Don’t just hold cash after exchange: Invest in Yen fixed deposits, ETFs, or forex trading to keep your capital growing

Beginners should start with “Taiwan Bank online foreign exchange + airport pickup” or “foreign currency ATM,” then, depending on how long they plan to hold, move into fixed deposits or ETFs. This way, you can enjoy cost-effective travel and add a layer of protection during market fluctuations.

Remember: understanding the NT dollar-Yen rate difference and choosing the right exchange method can save you 1,500 NT$ each time, totaling 15,000 NT$ a year. This painless saving is just a matter of your choice.