Will it be a good deal to exchange now with the US dollar appreciating by 8.7% by the end of 2025? The 4 major channels cost breakdown

December 2025, the Taiwan dollar against the Japanese yen reaches 4.85, an 8.7% increase from 4.46 at the beginning of the year — this means that if you plan to invest or travel abroad, the current exchange rate gains for converting to yen are already quite substantial. But the real question isn’t “should I exchange,” but “how to exchange with the least loss.”

We have collected the latest bank rates and actual cost data, helping you calculate the hidden fees across in-person, online, and ATM channels, so you can spend less unnecessary money.

Why is the Japanese Yen worth paying attention to? Multiple values from travel to hedging

Japan travel season is warming up, but the significance of exchanging yen is no longer just “going abroad for fun.”

Travel and daily life: Japan’s cash culture remains strong; most shopping in Tokyo, dining in Osaka, and ski resorts in Hokkaido only accept cash (credit card penetration is only 60%). Purchasing agents, online shopping in Japan, studying abroad, working holidays all require cash yen or remittances.

Financial investment perspective: The yen is one of the three major safe-haven currencies globally (the other two are USD and Swiss Franc). Last year, during the Russia-Ukraine conflict, the yen appreciated by 8% in a week, successfully hedging stock market declines. For Taiwanese investors, allocating some yen assets adds an extra layer of protection during Taiwan stock market volatility.

Interest rate arbitrage space: The Bank of Japan recently signaled a hawkish stance, expecting a rate hike to 0.75% at the December 19 meeting (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%. This has attracted funds seeking hedging yields. Meanwhile, we observe the RMB exchange rate fluctuating relatively, making the yen’s stability more attractive.

Direct cost analysis: How much will you lose exchanging NT$50,000 to yen?

Let’s do a straightforward calculation. Suppose you want to exchange NT$50,000 into yen; the hidden costs vary greatly across channels:

Key point: For the same NT$50,000, the cost difference between in-person and online currency exchange can exceed NT$1,200 — equivalent to a Japanese Kaiseki meal.

Four major exchange channels: which one suits you?

1. In-person cash exchange (most traditional, worst rate)

Bring NT$ to a bank or airport counter to exchange for yen cash. Simple operation, immediate receipt, but using “cash sell rate,” which is about 1-2% worse than spot rate.

Example from Taiwan Bank on 2025/12/10:

• Cash sell rate: 0.2060 TWD/JPY (1 TWD = 4.85 JPY)
• Spot sell rate: 0.2063 TWD/JPY (1 TWD = 4.87 JPY)

The difference seems small, but NT$50,000 yields over 300 yen less (about NT$60). Some banks also charge additional handling fees (e.g., E.Sun NT$100 per transaction, Cathay NT$200).

Bank cash sell rates comparison (2025/12/10):

• Taiwan Bank: 0.2060 (no fee)
• Mega Bank: 0.2062 (no fee)
• CTBC: 0.2065 (no fee)
• E.Sun: 0.2067 (NT$100 per transaction)
• Taipei Fubon: 0.2069 (NT$100 per transaction)

Advantages: Safe, reliable, denominations available (1,000, 5,000, 10,000 JPY), staff assistance.
Disadvantages: Rate difference, handling fees, limited operating hours (Weekdays 9:00-15:30).
Suitable for: Elderly, unfamiliar with online, small amounts (NT$10,000-20,000).

2. Online exchange + in-person or ATM withdrawal (advanced users)

Use bank app or online banking to convert NT$ to yen at “spot sell rate,” deposit into a foreign currency account, then choose in-person or ATM withdrawal.

This method can save about 1% on the exchange rate, but withdrawal fees (NT$5-100) apply.

Process:

1. Open a foreign currency account (E.Sun, Mega, Taiwan Bank all support)
2. Exchange online (24/7 operation)
3. Withdraw cash at counter or foreign currency ATM

Advantages: 24/7 operation, can stagger entries for average cost, better rate than in-person.
Disadvantages: Need to open an account first, withdrawal fees extra, interbank withdrawal may start at NT$5.
Suitable for: Forex investors, long-term yen holders, considering yen deposits (annual interest 1.5-1.8%).

3. Online currency exchange + airport pickup (best for office workers)

No need for a foreign currency account, just pre-arrange online with the bank, specify branch and date, transfer funds, then bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service.

Taiwan Bank “Easy Purchase” highlights:

• No handling fee (NT$10 fee if paid via TaiwanPay)
• About 0.5% rate discount
• 14 locations at Taoyuan Airport, 2 open 24 hours

This is the most convenient way before departure, especially for travelers heading straight from the airport.

Advantages: Better rate, no fee, airport pickup available.
Disadvantages: Need prior reservation (1-3 days ahead), pickup during bank hours only.
Suitable for: Office workers, planned travelers, last-minute decision within a week.

4. Foreign currency ATM withdrawal (emergency option)

Use a financial card at foreign currency ATMs to withdraw yen, supporting 24/7 operation, cross-bank withdrawal fee NT$5. Limited locations (~200 nationwide), denominations fixed at 1,000/5,000/10,000 JPY.

SinoPac Bank foreign currency ATM rules:

• Withdraw from NT$ account
• Daily limit NT$150,000
• No exchange fee

Note: During peak times (especially airports), cash may run out quickly. Plan ahead, don’t wait until last minute.

Advantages: Instant withdrawal, high flexibility, low cross-bank fee, no bank hours restriction.
Disadvantages: Few locations, limited denominations, cash shortages at peak times.
Suitable for: No time to visit bank, urgent needs, tight schedule.

Is now a good time to exchange? Timing and risk tips

Short-term market: USD/JPY from 160 at the start of the year to around 154.58, may rebound to 155 in the short term, but volatility is limited (2-5%).

Medium to long-term forecast: As the Bank of Japan hikes rates and the US enters a rate cut cycle, the yen may find support. Expect USD/JPY to stay below 150 in the mid-term.

Implications for Taiwanese investors:

• Continuous NT$ depreciation pressure makes holding some yen a hedging strategy
• Yen and RMB exchange rates diverge clearly; yen stability is more attractive
• Staggered exchange can avoid timing risks of lump-sum entry

Suggested strategy: Don’t exchange all at once; do 3-4 batches, targeting 4.80-4.90. This helps average costs and provides room to adjust during fluctuations.

After exchanging yen, don’t let your money sit idle

Getting yen is not the end; the key is to keep it earning. Here are four options suitable for small-scale beginners:

1. Yen fixed deposit (conservative)

• Minimum NT$10,000 equivalent
• Annual interest 1.5-1.8%
• Open online via E.Sun, Taiwan Bank, transfer directly
• Suitable for risk-averse, review every 3-6 months

2. Yen savings insurance (medium-term yield)

• Cathay, Fubon Life offer yen savings insurance
• Guaranteed interest 2-3%
• Lock-in 5-10 years, suitable for retirement planning

3. Yen ETFs (growth-oriented, e.g., 00675U, 00703)

• Track yen index, buy fractional shares via broker app
• Management fee 0.4% annually
• Suitable for dollar-cost averaging, diversify FX risk
• Highly liquid, can sell anytime

4. Forex trading (swing trading)

• Trade USD/JPY, EUR/JPY, etc.
• Long and short, 24/7 trading
• Small capital needed
• Suitable for experienced traders, capturing short-term volatility

Quick FAQ

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

Cash rate applies to physical currency exchange, received immediately but at the highest cost (banks bear cash handling, storage risks). Spot rate is the market price for delivery within two business days, more cost-effective. Simply put: Cash sell > Cash buy > Spot sell > Spot buy, with about 1-2% spread.

Q: How much yen can NT$10,000 buy?

Using Taiwan Bank’s 2025/12/10 cash sell rate of 4.85: NT$10,000 = 48,500 JPY.
At spot rate 4.87: NT$10,000 = 48,700 JPY, about 200 yen difference (NT$40).

Q: What ID do I need for in-person exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. Pre-booked exchanges require transaction notice. Large amounts (>NT$100,000) may need source of funds declaration. Under 20 need parental accompaniment.

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

Varies by bank (2025/10 new rules):

• CTBC: NT$120,000 per transaction and per day
• Taishin: NT$150,000 per transaction and per day
• E.Sun: NT$50,000 per transaction (50 banknotes), NT$150,000 per day

Distribute withdrawals if needed, use your bank card to avoid NT$5 cross-bank fee.

Summary: The golden rules for smart yen exchange

Yen is no longer just “pocket money for travel,” but an asset with hedging and small investment potential. Especially amid NT$ depreciation pressure and global market volatility, holding some yen adds a layer of protection.

Three golden rules:

1. Stagger your exchange, don’t convert all at once — lower timing risk, average cost
2. Choose the right channel to save money — online exchange saves over NT$1,000 compared to in-person
3. After exchange, keep the money working — move into deposits, ETFs, or forex trading to grow your funds

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then choose deposits, ETFs, or swing trading based on holding period. This way, you not only enjoy cost-effective travel but also add hedging during global market turbulence.