Cost comparison of exchanging TWD to JPY: Which method is the most cost-effective?

The NT$ to JPY exchange rate has risen to 4.85 in 2025, and the travel boom to Japan along with demand for JPY asset allocation are surging again. However, what many people don’t realize is that the cost difference between different exchange channels can be as high as NT$1,500-2,000, equivalent to wasting several cups of bubble tea. We have summarized four common methods for exchanging NT$ to JPY, illustrating the actual rates involved.

Is it cost-effective to exchange for JPY now? Exchange rate trend analysis

Timing is crucial. From the beginning of the year at 4.46, the NT$ to JPY has appreciated about 8.7%, which is a good signal for those wanting to retain JPY assets.

According to the latest market data, the Bank of Japan Governor Ueda Kazuo’s hawkish comments have pushed up rate hike expectations, with a projected increase to 0.75% at the December 19 meeting (a 30-year high). Meanwhile, the US has entered a rate cut cycle, with USD/JPY falling from a high of 160 at the start of the year to around 154.58. Short-term fluctuations may bring it back to 155, but the medium to long-term trend leans below 150.

Gradual entry is a smart approach. Since the second half of the year, Taiwan’s demand for currency exchange has increased by over 25%, mainly driven by travel recovery and asset hedging needs. It is not recommended to exchange all at once due to JPY’s two-way volatility—rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts could depress the rate.

NT$ to JPY: Analyzing 4 methods one by one

Method 1: Bank counter exchange (most traditional)

Bring NT$ cash directly to a bank or airport counter to exchange for JPY cash. Simple to operate, but using “cash selling rate” usually results in a 1-2% worse rate than the market rate.

Cost estimate: NT$50,000 exchange

Advantages: Safe and reliable, denominations available (1,000/5,000/10,000 JPY), staff assistance
Disadvantages: Less favorable rates, limited to business hours (9:00-15:30), service fees may add to costs
Suitable for: Those unfamiliar with online operations, need for small urgent amounts (e.g., at the airport)

Method 2: Online exchange + in-person pickup

Use bank app or online banking to convert NT$ into JPY and deposit into a foreign currency account (using “spot selling rate,” about 1% discount). For cash, pick up at the counter or withdraw via foreign currency ATM, but additional fees apply.

Cost estimate: NT$50,000 exchange

Advantages: 24/7 operation, better rates, allows for staggered entry to average costs
Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees
Suitable for: Those experienced in currency exchange, frequently using foreign currency accounts, considering JPY time deposits (current annual interest 1.5-1.8%)

Method 3: Online currency exchange + airport pickup (most convenient)

No need for a foreign currency account, just book online via bank website, select currency, amount, and pickup branch (airport options available). Bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” online exchange offers about 0.5% rate discount, and payment via Taiwan Pay costs only NT$10.

Cost estimate: NT$50,000 exchange

Advantages: Favorable rates, often no service fee, can choose airport branches (14 locations at Taoyuan Airport), reservation guarantees cash availability
Disadvantages: Need to book 1-3 days in advance, pickup during bank hours, branch cannot be changed
Suitable for: Travelers with clear schedules who want to pick up JPY directly at the airport

Method 4: Foreign currency ATM 24-hour self-service withdrawal

Use chip-enabled financial cards at foreign currency ATMs to withdraw JPY cash. Operate 24/7, with only NT$5 interbank fee deducted from NT$ account. E.SUN Bank’s foreign currency ATM allows NT$ account withdrawal of JPY, with a daily limit of NT$150,000 and no exchange fee.

Cost estimate: NT$50,000 exchange

Advantages: Instant withdrawal, high flexibility, 24/7 access, lowest cross-bank fee (NT$5)
Disadvantages: Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 JPY), high demand periods may run out of cash
Suitable for: Those with no time to visit banks, needing emergency cash

Summary table of four methods: costs and scenarios

Basic concepts beginners must know

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

Cash Rate is the exchange rate for physical banknotes/coins, advantageous for immediate cash but usually 1-2% worse than the spot rate.

Spot Rate is the foreign exchange market rate settled within T+2, used for electronic transfers, import/export, and foreign currency accounts, closer to international market prices.

Example: Based on Taiwan Bank’s December 10, 2025 rate, the cash selling rate is 0.2060, and the spot rate is about 0.2062. Although the difference seems small, exchanging NT$50,000 at these rates results in about 100-200 fewer JPY (NT$40-80 difference).

How many JPY can I get with NT$10,000?

Calculation: JPY amount = NT$ amount × current rate

Using Taiwan Bank’s cash selling rate 0.2060, NT$10,000 ≈ 48,500 JPY.
With the spot rate 0.2062, about 48,700 JPY, a difference of only 200 JPY.

Investment options after exchanging to JPY

Instead of letting idle funds earn no interest, consider moving into stable yields or growth-oriented assets.

1. Yen Time Deposit (Conservative)

E.SUN Bank and Taiwan Bank offer online foreign currency accounts starting from 10,000 JPY, with annual interest rates of 1.5-1.8%, suitable for conservative investors.

2. Yen Insurance Policies (Mid-term Hold)

Cathay and Fubon Life’s savings insurance with guaranteed interest rates of 2-3%, suitable for 3-5 year medium-term allocation.

3. Yen-related ETFs (Growth)

Yuan Da 00675U tracks the JPY index, can be bought in fractional shares via brokerage apps for dollar-cost averaging, annual management fee 0.4%.

4. Forex Swing Trading

Trade USD/JPY or EUR/JPY on forex platforms to capture rate fluctuations. Pros include two-way trading, 24-hour operation, small capital required, but requires basic trading knowledge.

FAQs

Q. What documents are needed to exchange foreign currency at the counter?
Bring ID + passport (foreigners also need residence permit). If pre-booked online, also need transaction notification. Under 20 requires parental accompaniment.

Q. What is the daily withdrawal limit for foreign currency ATMs?
Varies by bank; latest standards:

Use your own bank card to avoid cross-bank fees. During peak times (e.g., at airports), plan ahead as cash may run out.

Summary: Two principles for smart currency exchange

The JPY has surpassed the “travel pocket money” role, now also serving as a hedging asset and small investment vehicle. Whether preparing for a trip to Japan next year or taking advantage of NT$ depreciation for asset allocation, follow these two principles to minimize costs:

1. Staggered exchange — Don’t convert all at once; spread out to average exchange rates
2. After exchange, don’t just leave it idle — Transfer JPY into fixed deposits, ETFs, or swing trading to generate returns

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then upgrade to deposits, ETFs, or forex trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of asset protection amid global market fluctuations.