Is it worth exchanging Japanese Yen now? A complete guide to five exchange rate strategies and ATM withdrawals

NTD to JPY has upgraded from a purely travel demand to an asset allocation tool. As of December 10, 2025, the NTD/JPY exchange rate reached 4.85, appreciating about 8.7% from 4.46 at the beginning of the year. This has prompted many to seriously consider whether to enter the market. But the real question isn’t “when to exchange,” but “how to exchange.”

Why is the JPY worth paying attention to?

In Taiwan, the role of the Japanese Yen extends far beyond just a travel currency. From daily consumption to financial allocation, the Yen plays an important role.

Travel and consumption: Most retail stores in Japan (especially small shops) still rely on cash transactions, with credit card penetration at only 60%. Scenarios like purchasing agents, Japanese online shopping, studying abroad, working holidays, etc., also require Yen.

Financial investment: The Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Recently, the Bank of Japan has shifted to a hawkish stance, with Governor Ueda Kazuo signaling rate hike expectations. Market forecasts suggest a 0.25 bps increase 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 indicates increased support for the Yen exchange rate, making it suitable for hedging Taiwan stock market volatility in the long term.

Is now a good time to exchange? Staggered entry is the key

In the second half of 2025, Taiwan’s foreign exchange demand is expected to grow by 25%, mainly driven by travel recovery and hedging needs. From the exchange rate perspective, the Yen appreciated 8.7% at the start of the year, yielding considerable gains, but short-term fluctuations still exist.

According to the latest analysis, USD/JPY has fallen from a high of 160 at the beginning of the year to around 154.58. Short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest it will operate below 150. For small investors, the focus isn’t on bottom-fishing but on staggered entry and risk diversification.

The four most cost-effective currency exchange channels

The cost difference among various exchange methods can reach over 1,500 NT dollars (based on 50,000 NT). The key is choosing the right method and timing.

1. Bank counter direct exchange: the most traditional but most expensive

This is the most used method but also the least cost-effective. Using the “cash selling rate” (1-2% higher than the spot rate), plus possible handling fees, 50,000 NT will lose about 1,500-2,000 NT.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 NT/JPY (meaning 1 NT = 4.85 JPY), so 10,000 NT can only buy about 48,500 JPY. Many banks also charge an additional 100-200 NT handling fee.

Recommended scenario: Urgent needs at the airport or travelers unfamiliar with online operations.

2. Online currency exchange with account deposit: preferred for forex investors

Transfer NT to a foreign currency account via bank app or online banking, enjoying the “spot selling rate” (about 1% better than cash selling). If withdrawing cash, you can choose in-branch or foreign currency ATM, but a handling fee of at least 100 NT applies.

Advantages include 24-hour operation, ability to buy in batches for average cost, and better exchange rates. Many banks like E.SUN Bank offer this service, combined with 0.75-1.8% Yen fixed deposits, allowing small amounts to earn stable returns.

Recommended scenario: Readers with forex experience planning to hold Yen long-term or invest in Yen fixed deposits.

3. Online currency settlement, pick-up at airport or designated branches: best choice before departure

No need to open a foreign currency account in advance. Simply fill in the amount, currency, pick-up branch, and date on the bank’s official website, then pick up in person. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay only 10 NT via TaiwanPay), with about 0.5% exchange rate advantage. For 50,000 NT, the loss is only 300-800 NT.

The biggest advantage is the ability to reserve pick-up at Taoyuan Airport branches, which have 14 Taiwan Bank locations, including 2 open 24 hours, suitable for last-minute exchange before departure.

Recommended scenario: Well-planned travelers who want to withdraw directly at the airport.

4. Foreign currency ATM withdrawal: 24/7 instant withdrawal, lowest cross-bank fees

Use a chip-enabled financial card to withdraw cash in Yen at foreign currency ATMs, supported around the clock. Deducting directly from a NT account incurs only a 5 NT cross-bank fee, with no currency exchange fee. The daily withdrawal limit at E.SUN Bank’s foreign currency ATMs is 150,000 NT, while other banks are typically 100,000-120,000 NT (adjusted for the 2025 anti-fraud regulations).

However, there are only about 200 foreign currency ATMs nationwide, and cash may run out during peak times (airports, shopping centers). It’s recommended not to wait until the last minute to withdraw.

Recommended scenario: Urgent needs, no time to visit the bank, or for readers exchanging foreign currency cash to TWD or vice versa.

5. International card withdrawal at Japanese ATMs: backup plan after arriving in Japan

After arriving in Japan, use Mastercard or Cirrus international cards at Japanese ATMs to withdraw Yen, with fees usually between 100-200 NT. After the end of 2025, Japanese ATM withdrawal services will face adjustments; check card compatibility in advance.

Cost comparison and suitable scenarios for each method

Asset allocation after currency exchange: Don’t let Yen sit idle

After exchanging Yen, consider the following investment options:

Yen fixed deposit: Annual interest rate 1.5-1.8%, minimum 10,000 Yen, offered by E.SUN Bank, Taiwan Bank, suitable for conservative investors.

Yen savings insurance: Guaranteed interest rate 2-3%, medium-term holding, products from Cathay Life, Fubon Life.

Yen ETFs (e.g., Yuanta 00675U, 00703): Track Yen or Japanese market indices, suitable for dollar-cost averaging, with an annual management fee of about 0.4%.

Forex swing trading: Directly trade USD/JPY or EUR/JPY, long and short positions, 24-hour trading, suitable for experienced swing traders.

Quick answers to common questions

Q: How much is the difference between cash rate and spot rate?
Cash rate is the bank’s quote for physical banknotes, usually 1-2% worse than the spot rate (market transaction price), plus handling fees. Spot rate is used for non-cash transfers, closer to international market prices.

Q: How much Yen can I get with 10,000 NT?
Based on Taiwan Bank’s rate on December 10, 2025, at 4.85, 10,000 NT can buy about 48,500 Yen; at the spot rate of 4.87, about 48,700 Yen.

Q: What do I need to bring for in-branch exchange?
Taiwanese citizens: ID + passport; foreigners: passport + residence permit. If booked online, also bring transaction notification. For large amounts (over 100,000 NT), may need to declare source of funds.

Q: What’s the daily limit for foreign currency ATM withdrawal?
Due to the 2025 anti-fraud regulations, most banks set the limit at 100,000-150,000 NT equivalent per day. Limits vary by issuing bank. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary

The Yen is no longer just for travel pocket money but also a hedging and small investment asset. Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM withdrawal,” then transition into fixed deposits, ETFs, or swing trading based on needs. By mastering the principles of “staggered entry and risk diversification,” you can minimize exchange costs and maximize returns.