How to get the best exchange rate for Japanese Yen? A comparison of the costs of four major exchange channels

The NT$ to JPY exchange rate has now reached 4.85, and many people are planning to travel abroad or invest in Japanese yen. But did you know? Choosing the right exchange method can save you over 1,000 NT$. This article will analyze the cost differences of exchanging Japanese yen one by one, helping you find the strategy that best suits you.

Is it worth exchanging yen now?

From 4.46 at the beginning of the year to now 4.85, the yen has appreciated approximately 8.7%. Under the continued pressure of NT$ depreciation, the foreign exchange gains from exchanging yen are quite substantial. According to the latest observations, Taiwan’s foreign exchange demand in the second half of the year has increased by over 25%, mainly driven by the recovery in travel demand and investors’ hedging needs.

However, when it comes to “Is it worthwhile to exchange now?”, the answer is: it’s better to enter in stages with a strategic plan. As one of the world’s three major safe-haven currencies (along with USD and Swiss Franc), the yen has long-term stability but still has short-term volatility of 2-5%. Especially with the Bank of Japan’s rising interest rate expectations (Governor Ueda Kazuo’s hawkish comments have pushed market expectations to 80%), a rate hike of 0.25 basis points to 0.75% is expected at the December 19 meeting—this is the highest in nearly 30 years, with Japanese bond yields reaching a 17-year high of 1.93%.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. In the short term, it may return to around 155, but in the medium to long term, it is forecasted to retreat below 150. For investors, entering in stages can effectively average costs.

Yen exchange methods 1: On-site counter exchange

Carrying NT$ cash directly to a bank or airport counter to exchange for yen cash is the most traditional method. Banks will price based on the “cash selling rate,” which is usually 1-2% worse than the spot rate. For example, Taiwan Bank’s December 10, 2025 rate is about 0.2060 NT$ per yen (roughly 4.85 yen per NT$).

Some banks also charge fixed handling fees, ranging from NT$100 to NT$200 per transaction. For NT$50,000, the total loss is about NT$1,500-2,000.

Advantages: Simple process, denominations available (1000, 5000, 10000 yen), staff assistance available.
Disadvantages: Worse exchange rates, limited bank hours (9:00-15:30 on weekdays), possible additional fees.
Suitable for: People unfamiliar with online operations or needing to exchange small amounts temporarily.

Yen exchange methods 2: Online remittance for direct pickup

No need to open a foreign currency account in advance. Fill in currency, amount, pickup branch, and date on the bank’s website. After completing the transfer, just bring ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online remittance is fee-free (only NT$10 if paid via TaiwanPay), with about 0.5% better rates.

This is the best pre-departure reservation method. Taoyuan Airport has 14 Taiwan Bank locations, 2 of which operate 24 hours, ideal for international travelers.

For NT$50,000, the cost is approximately NT$300-800.

Advantages: Better rates, often no handling fees, can specify airport pickup.
Disadvantages: Need to book at least 1-3 days in advance, pickup time limited to bank hours, branch locations cannot be changed.
Suitable for: Well-planned travelers who want to withdraw cash directly before departure.

Yen exchange methods 3: Online foreign currency account exchange

First, transfer NT$ to a foreign currency account via online banking or app, converting to yen at the “spot sell rate” (about 1% better than cash selling rate). If cash is needed later, withdraw at counters or from foreign currency ATMs, but additional handling fees apply (around NT$100 or more).

For example, E.SUN Bank’s app allows real-time currency exchange. To withdraw cash, you pay the difference between spot and cash rates, with a minimum NT$100 fee. Suitable for investors who want to observe exchange rate trends and buy in stages at low points.

For NT$50,000, the cost is about NT$500-1,000.

Advantages: 24/7 operation, ability to buy in stages to average costs, better rates than cash exchange.
Disadvantages: Need to open a foreign currency account first, withdrawal incurs extra fees.
Suitable for: Those experienced in forex trading, regularly using foreign currency accounts, and considering yen fixed deposits (currently about 1.5-1.8% annual interest).

Yen exchange methods 4: 24-hour foreign currency ATM withdrawal

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen cash, supporting 24/7 operation and interbank withdrawals (only NT$5 cross-bank fee from NT$ accounts). E.SUN Bank’s foreign currency ATMs allow withdrawal of yen from NT$ accounts, with a daily limit of NT$150,000 and no exchange fee.

However, foreign currency ATMs are limited (about 200 nationwide), with fixed denominations (1000/5000/10000 yen), and cash shortages during peak times. It’s recommended not to wait until the last minute, especially at airports or crowded areas.

For NT$50,000, the cost is about NT$800-1,200.

Advantages: Anytime withdrawal, maximum flexibility, low interbank fees.
Disadvantages: Limited locations, fixed denominations, cash may run out during peak hours.
Suitable for: People with tight schedules needing urgent cash withdrawal.

Summary of four exchange methods costs

Estimated costs for NT$50,000 exchange:

Money-saving tip: For a budget of NT$200,000-500,000, the best combo is “online remittance + ATM withdrawal.” Use online remittance to get some cash at the airport for emergencies, and withdraw the rest in stages via ATM, balancing cost and flexibility.

Common questions about yen exchange

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

Cash exchange rate is the rate banks offer for physical banknotes, convenient for carrying cash but usually 1-2% worse than the spot rate. The spot rate is the exchange rate in the forex market settled within two business days (T+2), mainly used for electronic transfers, closer to international market prices, but requires waiting for settlement.

Q: How much yen can I get with NT$10,000?

Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 can exchange for about 48,500 yen. Using the spot sell rate (about 4.87), it’s roughly 48,700 yen, a difference of about 200 yen (equivalent to NT$40).

Q: What ID do I need for on-site exchange?

Taiwanese need to bring their ID card and passport; foreigners need their passport and residence permit. If pre-booked online, bring the transaction notification. Note that minors under 20 need a parent’s accompaniment and signed consent; large exchanges over NT$100,000 may require source of funds declaration.

How to use exchanged yen funds

After exchanging yen, leaving the money idle yields no interest. You can redirect it into stable or growth investments.

Yen fixed deposit: The simplest option. Open an external currency account with E.SUN or Taiwan Bank online, deposit starting from 10,000 yen, with an annual interest rate of about 1.5-1.8%.

Yen insurance policies: Companies like Cathay Life, Fubon Life offer savings insurance with guaranteed rates of 2-3%, suitable for medium-term holding.

Yen ETFs: Tracking yen indices like Yuanta 00675U, can be bought in fractional shares via broker apps, suitable for periodic investment.

Forex swing trading: Trade USD/JPY or EUR/JPY directly on forex platforms, allowing two-way trading 24/7 with a certain capital. Many platforms offer zero commissions, low spreads, and tools like stop-loss, take-profit, and trailing stops.

Conclusion

The yen is no longer just pocket money for travel but also an asset with hedging and investment value. By mastering the two principles of “staged entry + continuous use after exchange,” you can minimize costs and maximize returns.

Beginners are advised to start with “online remittance + airport pickup” or “foreign currency ATM,” then flexibly allocate into fixed deposits, ETFs, or swing trading based on needs. This way, traveling becomes more cost-effective, and you gain an extra layer of asset protection amid global market fluctuations.