NTD to JPY exchange cost showdown | The latest 4 major exchange channels in 2025 analyzed

In December 2025, the NT dollar to Japanese Yen has already reached the 4.85 level. Many people are eager to go abroad or allocate foreign currency. But did you know? Choosing the wrong exchange method could cost you an extra NT$1,500 to NT$2,000 just in spread and fees. We have summarized the four most common currency exchange channels in Taiwan, using real market rates to show you which one has the lowest cost.

Why are Taiwanese people rushing to exchange for Yen?

The demand for Yen in Taiwan far exceeds that of other foreign currencies, for three main reasons:

Travel and consumption needs are the most direct. Cash usage in stores across Japan still accounts for about 40%, especially in rural and tourist areas, where credit card payments are much lower than in cities. Daily needs like purchasing, Japanese online shopping, studying abroad, and part-time work also revolve around Yen cash or account payments.

Yen is one of the world’s three major safe-haven currencies. Besides USD and Swiss Franc, Yen is often the first choice for global capital hedging due to Japan’s stable economy and manageable government debt. During the Russia-Ukraine conflict in 2022, Yen appreciated 8% in a single week, while global stock markets fell 10%. For Taiwanese investors, holding Yen appropriately can hedge against Taiwan stock risks.

The Bank of Japan’s rate hikes open arbitrage opportunities. Japan’s long-standing ultra-low interest rate policy is changing. Governor Ueda Kazuo’s recent hawkish stance has pushed market expectations of rate hikes above 80%. Yen’s role as a “funding currency” is gradually shifting. Coupled with the NT dollar’s depreciation trend, the timing to exchange Yen becomes relatively favorable.

Actual cost comparison of four exchange channels

Many think exchanging Yen is just running to the bank, but the cost difference can be surprisingly large. Based on the latest rates as of December 10, 2025, using NT$50,000 as an example, here’s the breakdown.

Option 1: Bank counter cash exchange — the most traditional but most expensive

Carry NT$ cash to a bank branch or airport counter to exchange for Yen cash. This method uses the “cash selling rate,” which is about 1-2% worse than the international spot rate, making it the highest overall cost.

For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/Yen (roughly NT$4.85 per Yen). Adding some bank counter fees (Mega, First Bank are free; E.SUN charges NT$100 per transaction), NT$50,000 will lose NT$1,500 to NT$2,000.

Bank counter comparison (2025/12/10)

Suitable for: Those unfamiliar with online operations, urgent small amounts (NT$10,000-20,000), or travelers.

Option 2: Online currency exchange + cash withdrawal — a moderate-cost compromise

Use bank app or online banking to convert NT$ into Yen and deposit into a foreign currency account (enjoying “spot sell rate”). Then withdraw cash at counters or foreign currency ATMs, incurring a spread fee (usually NT$100-200).

E.SUN’s approach is to do online spot exchange, then pay a spread fee at withdrawal, with total costs around NT$500-1,000 loss. The advantage is observing exchange rate trends, entering in batches when the NT$ to Yen rate is below 4.80, averaging costs.

Pros: 24-hour online operation, better rates than counters, suitable for experienced users. Cons: Need to open a foreign currency account first, withdrawal incurs additional fees. Suitable for: Those planning long-term Yen deposits or ETFs.

Option 3: Online currency exchange + airport pickup — the best value

No need for a foreign currency account. Fill in amount, pickup location, and date on the bank’s website. After the bank completes the transfer, bring ID and transaction notice to the counter to collect cash. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via Taiwan Pay), with a rate advantage of about 0.5%.

The key benefit is the ability to reserve airport branch pickup. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours. For travelers needing cash just before departure, this option keeps costs within NT$300-800, making it the most economical.

Pros: Better rates, often fee-free, airport pickup, no prior account needed. Cons: Need to book 1-3 days in advance, pickup time limited by bank hours. Suitable for: Planned travelers who want to withdraw directly at the airport.

Option 4: Foreign currency ATM — instant and most convenient but limited locations

Use a chip-enabled financial card at foreign currency ATMs to withdraw Yen cash, operating 24/7. Deduct NT$ from your NT$ account with only NT$5 interbank fee. Some banks like E.SUN allow daily withdrawal limits of NT$150,000.

However, there are about 200 foreign currency ATMs nationwide, with limited currency options, and cash often runs out during peak times. Cost loss is about NT$800-1,200. Suitable for urgent, on-the-spot needs without time to visit banks.

Pros: Instant withdrawal, 24/7 flexibility, low cross-bank fee. Cons: Few locations, fixed denominations, often out of stock at peak times. Suitable for: Urgent needs, busy professionals.

Cost comparison table of four methods

Beginner tip: For budgets NT$50,000-200,000, the best combo is “Online exchange + airport pickup” or “Multiple ATM withdrawals.”

Is now a good time to exchange Yen? Timing is key

As of December 10, 2025, the NT dollar to Yen is about 4.85, appreciating roughly 8.7% from the start of the year at 4.46. The exchange gains are significant. Recent observations show Taiwan’s currency exchange demand in the second half of the year grew by 25%, mainly driven by travel recovery and asset allocation needs.

Exchange rate trend analysis: USD/JPY dropped from a high of 160 at the start of the year to around 154.58 now. The Bank of Japan’s rate hike expectations are strong (expected to raise by 0.25 bps to 0.75% on December 19). Japan’s bond yields hit a 17-year high of 1.93%. In the short term, Yen may fluctuate between 155-150, but medium to long-term forecasts suggest below 150.

Investment advice:

• Short-term risk: Arbitrage closing may cause 2-5% volatility.
• Medium-long term opportunity: Yen as a safe-haven currency can hedge Taiwan stock market volatility.
• Operational strategy: Use staggered exchange, avoid all at once, to control risk and seize opportunities.

Wealth allocation after exchanging Yen

After exchanging Yen, don’t let the money sit idle without interest. Based on risk appetite, consider the following allocations:

Conservative｜Yen fixed deposit
Open a foreign currency account online, deposit Yen starting from NT$10,000, with annual interest rates of 1.5-1.8%. Suitable for risk-averse investors.

Mid-term allocation｜Yen insurance
Buy Yen savings insurance products from Cathay, Fubon, etc., with guaranteed rates of 2-3%, combining protection and returns.

Growth｜Yen ETFs (e.g., 00675U, 00703)
Track Yen indices, buy fractional shares via brokerage apps for dollar-cost averaging, diversify currency risk, suitable for small investors.

Swing trading｜Forex trading
Trade USD/JPY or EUR/JPY directly, with long and short positions, 24/7 trading, small capital needed, suitable for experienced traders.

While Yen is a strong safe-haven, global arbitrage unwinding or geopolitical conflicts can cause two-way volatility. For investment, Yen ETFs (like 00675U, with an annual management fee of 0.4%) can effectively diversify risk.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate applies to physical cash transactions, usually worse (about 2% off market), with immediate delivery; spot rate is used for electronic transfers, offering better rates but settled T+2. Simply put, cash transactions incur “physical costs.”

Q. How much Yen can NT$10,000 buy?
Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 Yen. With spot rate 4.87, about 48,700 Yen, difference only 200 Yen (NT$40).

Q. What to bring for counter exchange?
Taiwanese: ID + passport; foreigners: passport + residence permit. For online booking, bring transaction notice. Under 20 years old need parent’s accompaniment; over NT$100,000 may require source of funds declaration.

Q. Are there limits on foreign currency ATM withdrawals?
Different banks have different rules. Post-2025 regulations, most daily limits are NT$100,000-150,000 equivalent. Consider splitting withdrawals or using your bank’s card to avoid cross-bank fees. Plan ahead during peak times to prevent cash shortages.

Final advice

Yen is no longer just travel “pocket money,” but an asset with hedging and investment value. Whether you plan to travel next year or want to hedge against NT dollar depreciation by moving into Yen, the key is “staggered exchange + active asset allocation.” This way, you can minimize costs and maximize returns. Beginners can start with “Taiwan Bank online exchange + airport pickup” or “multiple ATM withdrawals,” then shift into fixed deposits or ETFs as needed. This approach ensures both cost-effective travel and added protection during global market fluctuations.