JPY Exchange｜Is NT$4.85 the most cost-effective rate to buy JPY? Testing the costs of four major channels

In December 2025, the NT dollar to Japanese Yen has reached a relatively high point of 4.85. But do you know? Choosing the wrong exchange method could cost you an extra NT$1,500 to NT$2,000 just in exchange rate differences and fees. We tested four major ways to exchange JPY, using the latest rates and fee tables to help you calculate the most cost-effective method.

First, understand: Why exchange JPY now?

The Japanese Yen is not just pocket money for travel. From a financial perspective, the Yen has long been one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), especially during global market turbulence. During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a single week, successfully buffering a 10% decline in the stock market.

For Taiwanese investors, exchanging Yen is not just for international travel; it’s an important tool for hedging Taiwan stock market volatility. Plus, with the recent hawkish shift by the Bank of Japan (BOJ) and an imminent rate hike in December (Governor Ueda hinted at raising rates to 0.75%), the Yen’s medium- to long-term support remains strong.

Testing four major exchange methods｜Who is the winner?

First choice: Online currency exchange + airport pickup｜Best for pre-trip planning

No need to open a foreign currency account first. Simply fill in the currency, amount, and pickup branch on the bank’s website, then complete the transfer and pick up at the counter. Taiwan Bank’s “Easy Purchase” online exchange and Mega International Bank offer this service.

What to bring for in-branch remittance? ID card, passport (foreigners also need residence permit), and the transaction notification sent by the bank. If under 20, a parent’s accompaniment and consent form are required. Large exchanges (over NT$100,000) may require source of funds declaration.

Cost analysis (based on NT$50,000)

• Exchange rate advantage: about 0.5%, compared to in-branch discount of 1-2%
• Service fee: Taiwan Bank free (NT$10 if paid via Taiwan Pay)
• Estimated loss: NT$300-800

Advantages: Better exchange rates, often fee-free, can specify airport pickup, Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours)

Disadvantages: Need to book 1-3 days in advance, pickup limited to bank hours, branches cannot change pickup location

Second choice: Foreign currency ATM withdrawal｜Night-time travel savior

Use a chip-enabled bank card to withdraw cash in Yen at foreign currency ATMs, which operate 24/7. Deduct NT$5 cross-bank fee from your NT account, no currency exchange fee. Fubon Bank’s foreign currency ATMs have a daily limit of NT$150,000.

Note: Japan ATM withdrawal services will be adjusted by the end of 2025. When returning to Taiwan, international cards (Mastercard/Cirrus) will be required.

Cost analysis (based on NT$50,000)

• NT$ deduction, cross-bank fee NT$5 per transaction
• Instant withdrawal, no currency exchange fee
• Estimated loss: NT$800-1,200

Advantages: 24/7 instant withdrawal, high flexibility, low cross-bank fee

Disadvantages: Only about 200 ATMs nationwide, fixed denominations (1,000/5,000/10,000 Yen), cash may run out during peak hours

In-branch remittance limit reference (2025 new system): Many third-party digital accounts at banks have limits reduced to NT$100,000 per day; consider spreading withdrawals over multiple days.

Third choice: Online exchange + in-branch or ATM withdrawal｜For forex investors

Use bank app or online banking to convert NT$ into Yen and deposit into a foreign currency account (using spot selling rate, better than cash selling by 1%), then withdraw cash at your preferred time.

E.Sun Bank’s foreign currency accounts have low minimum deposits (NT$10,000 Yen). When withdrawing, you pay the difference between spot and cash rates (minimum NT$100).

Cost analysis (based on NT$50,000)

• Exchange rate advantage: 1-1.5%
• Withdrawal fee: NT$100-200
• Estimated loss: NT$500-1,000

Advantages: 24/7 operation, can buy in installments to average costs, Yen fixed deposit annual interest rate 1.5-1.8%

Disadvantages: Need to open a foreign currency account first, extra fee for cash withdrawal, cross-bank fee NT$5-100

Fourth choice: In-branch direct exchange｜Emergency option

Bring cash NT$ to a bank branch or airport counter to exchange for Yen cash, using the “cash selling rate” (1-2% worse than spot rate). Some banks charge fixed handling fees.

Cash selling rates as of December 10, 2025

Cost analysis (based on NT$50,000)

• Worst exchange rate, loss of 1-2%
• Additional handling fee (NT$0-200)
• Estimated loss: NT$1,500-2,000

Advantages: Safe, reliable, full denominations, on-site assistance

Disadvantages: Worst exchange rate, limited to business hours (9:00-15:30), handling fees increase cost

Exchange methods ranking｜Clear cost-saving options

Is it worth exchanging Yen now? One sentence judgment

Yes, but operate in installments.

On December 10, 2025, NT$ to Yen is 4.85, up 8.7% from the beginning of the year at 4.46. In the second half of the year, Taiwan’s forex demand grew by 25%, mainly due to travel recovery and hedging needs.

However, the Yen remains volatile. The US rate cut cycle supports Yen, and the BOJ’s rate hike expectation (to 0.75% on December 19) further boosts the Yen. USD/JPY has fallen from 160 to 154.58 this year, with a short-term retest of 155 possible, but medium to long-term forecasts suggest below 150.

For investors, Yen’s typical two- to five-percent volatility suggests gradual entry, avoiding all-in exchange.

How to hold Yen after exchange? 4 prudent allocation options

Exchanging alone isn’t enough; money can depreciate. After exchanging, consider:

1. Yen fixed deposit (conservative) E.Sun Bank, Taiwan Bank foreign currency accounts, minimum NT$10,000 Yen, annual interest 1.5-1.8%

2. Yen insurance policies (medium-term hold) Cathay, Fubon savings insurance, guaranteed interest 2-3%

3. Yen ETFs (growth) Yuan Da 00675U tracking Yen index, low minimum trading, suitable for dollar-cost averaging

4. Yen swing trading (advanced) Trade USD/JPY, EUR/JPY directly to capture intraday volatility

Quick FAQ

Q. How much is the difference between cash rate and spot rate?

Cash rate is the rate banks offer for physical cash, usually 1-2% worse than spot. Spot rate is used for electronic transfers, settled T+2, closer to international market rate, more favorable.

Q. How much Yen do I get for NT$10,000?

At Taiwan Bank’s December 10 cash selling rate of 4.85: NT$10,000 × 4.85 = 48,500 Yen. Using spot rate 4.87: NT$10,000 × 4.87 = 48,700 Yen, a difference of 200 Yen (~NT$40).

Q. What to bring for in-branch remittance?

ID card + passport (or residence permit) + transaction notification. Under 20 needs parent’s accompaniment and consent. Large amount (>NT$100,000) requires source of funds declaration.

Q. What is the limit for foreign currency ATM withdrawal?

Post-2025 new rules, most third-party digital accounts at banks are limited to NT$100,000 per day. Check your bank’s rules or split withdrawals over different days.

Final advice

Yen has evolved from “travel pocket money” to “hedging asset.” Whether for travel or asset allocation, mastering “batch exchange + immediate use” can minimize costs. Beginners are recommended to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then progress to Yen fixed deposits or ETF investments as needed. This way, you save on travel costs and add a layer of protection during global market turbulence.