How to choose when exchanging TWD to JPY? Breakdown of four major options' costs and exchange rate timing

By the end of 2025, the NT dollar to Japanese Yen exchange rate reached 4.85, hitting a new high for the year. Whether planning to travel abroad, shop on behalf of others, or seize hedging opportunities, how to exchange Yen at the lowest cost has become a concern for many. We will break down the costs, processes, and suitable scenarios of the four main currency exchange channels to help you find the most suitable solution.

The Four Main Channels for NT Dollar to Yen Exchange: Cost and Convenience Comparison

Exchanging Yen in Taiwan seems simple, but choosing the wrong method could cost you more than 1,500 NT dollars. Here are the mainstream options currently available in the market:

Option 1: Bank Counter Cash Exchange — The Most Traditional but Costliest

Bringing NT cash directly to a bank or airport counter to exchange for Yen banknotes is the most familiar method. Banks will use the “cash selling exchange rate,” which is about 1-2% worse than the market spot rate. For example, Taiwan Bank’s cash selling rate in December 2025 is about 0.2060 (i.e., 1 NT dollar = 4.85 Yen). Some banks also charge a handling fee of 100-200 NT dollars.

Exchanging 50,000 NT dollars could result in a loss of about 1,500-2,000 NT dollars. This method is only suitable for small, urgent needs (such as suddenly needing cash at the airport) or for those unfamiliar with online operations.

Advantages: Immediate cash on hand, safe and reliable, multiple denominations available
Disadvantages: Exchange rate spread, limited operating hours, possible handling fees

Option 2: Online Currency Exchange + ATM Withdrawal — Favorite Among Investors

Using bank apps or online banking, convert NT dollars to Yen in your Yen account at the “spot selling rate,” then withdraw cash at counters or foreign currency ATMs. The spot rate is about 1% better than the cash rate, but cash withdrawal incurs a spread fee (usually 100-500 NT dollars). Interbank withdrawals add a 5 NT dollar fee.

This method is suitable for observing exchange rate trends and entering the market in batches. Exchanging 50,000 NT dollars could cost about 500-1,000 NT dollars in losses. The advantage is 24-hour operation, allowing you to wait until the NT dollar to Yen rate drops below 4.80 before gradually entering, lowering the average cost.

Advantages: Better exchange rates, 24/7 operation, ability to buy in installments
Disadvantages: Need to open a foreign currency account, withdrawal fees apply

Option 3: Online Currency Settlement + Airport Pickup — The Best Pre-Travel Plan

Taiwan Bank and Mega International Bank offer “online currency settlement” services, eliminating the need for a foreign currency account. Fill in the amount, currency, pickup branch, and date on their official websites. After completion, bring your ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” offers a 0.5% rate discount, with handling fees as low as 10 NT dollars (via Taiwan Pay) or completely free. Taoyuan Airport has 14 pickup points (2 of which operate 24 hours).

Exchanging 50,000 NT dollars results in a loss of only 300-800 NT dollars, making it the most economical choice before traveling. The downside is that you need to make an appointment 1-3 days in advance and cannot change the pickup branch afterward.

Advantages: Best exchange rate, low or no handling fee, convenient airport pickup
Disadvantages: Requires prior appointment, pickup time limited, branch cannot be changed

Option 4: Foreign Currency ATM — Emergency 24-Hour Solution

Using a chip-enabled financial card at foreign currency ATMs to withdraw Yen cash, directly debiting from your NT account, with only a 5 NT dollar interbank fee. E.SUN Bank’s foreign currency ATM limit is NT$150,000 per day, with no currency exchange fee. Operating 24 hours, the denominations are fixed at 1,000/5,000/10,000 Yen.

Exchanging 50,000 NT dollars could result in a loss of about 800-1,200 NT dollars. The drawback is that there are only about 200 such ATMs nationwide, especially at airports and busy areas, which often sell out during peak times. It’s recommended to reserve in advance.

Advantages: Instant withdrawal, 24-hour flexibility, lowest interbank fee
Disadvantages: Limited locations, fixed denominations, often out of stock during peak hours

Cost Transparency: Cost Comparison Table for 50,000 NT Dollars Exchange

Is Now a Good Time to Exchange Yen? Market Timing Analysis

Short-term Exchange Rate Trends

In 2025, the NT dollar to Yen appreciated from 4.46 at the start of the year to 4.85, an 8.7% increase, generating significant forex gains for Taiwanese investors. The Bank of Japan’s Governor Ueda Kazuo recently made hawkish comments, pushing up rate hike expectations to 80%, with a 0.25 basis point increase to 0.75% on December 19 (a 30-year high). Japanese government bond yields hit a 17-year high of 1.93%.

The USD/JPY pair fell from a high of 160 at the start of the year to 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150. During this rate hike cycle, the Yen, as a safe-haven currency, will be supported.

Investment Value Judgment

The Yen combines hedging properties with growth potential. As one of the three major safe-haven currencies (alongside USD and Swiss Franc), funds flow into Yen during market turbulence—taking the Russia-Ukraine conflict in 2022 as an example, the Yen appreciated 8% in a week, buffering a 10% stock market decline. For Taiwanese investors, exchanging Yen is not only for travel but also for hedging Taiwan stock risks.

Recommended Strategy: Enter gradually, avoiding all-in exchanges. Currently, the rate fluctuates within a range; it’s advisable to buy in installments below 4.80, making the average cost more competitive. Short-term risks include 2-5% volatility from arbitrage unwinding.

Four Major Options to Enhance Value After Exchanging Yen

Once you have Yen, don’t let the money sit idle. Consider the following investment options:

1. Yen Fixed Deposit — Steady Returns
E.SUN Bank, Taiwan Bank foreign currency accounts, starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. Suitable for risk-averse investors.

2. Yen Insurance Policies — Medium-term Gains
Cathay, Fubon life insurance savings policies, with guaranteed interest rates of 2-3%, locking in medium-term returns.

3. Yen ETFs (e.g., 00675U) — Growth Allocation
Yuan Da 00675U tracks Yen indices, available for fractional shares via brokerage apps for dollar-cost averaging, with an annual management fee of 0.4%. Suitable for risk diversification.

4. Forex Swing Trading — High Risk, High Return
Directly trade USD/JPY or EUR/JPY to capture exchange rate fluctuations, supporting both long and short positions, 24-hour trading, with small capital.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) applies to physical banknotes, usually 1-2% worse than the spot rate, with immediate delivery. Spot rate (Spot Rate) is used for electronic transactions without cash, more favorable but settled T+2.

Q: How much Yen can I get for 10,000 NT dollars?
Using the current rate of 4.85, about 48,500 Yen. With the spot rate of 4.87, about 48,700 Yen. The difference is only 200 Yen.

Q: What should I bring for counter currency exchange?
ID card + passport; minors under 20 need parental consent and accompaniment; amounts over 100,000 NT dollars may require source of funds declaration. Online booking also requires transaction notification.

Q: Are there withdrawal limits at foreign currency ATMs?
Post-October 2025, many banks adjusted limits. China Trust Bank: NT$120,000/day; Taishin Bank: NT$150,000/day; E.SUN Bank: NT$50,000 per transaction, NT$150,000/day. It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Two Key Principles for Smart Currency Exchange

The Yen has evolved from a simple “travel pocket money” to an asset with hedging and investment value. Whether for next year’s travel or asset allocation, mastering the principles of “batch exchange” and “don’t leave the money idle after exchange” can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then, based on market trends and personal risk preferences, transfer Yen into fixed deposits, ETFs, or swing trading. This way, you can enjoy the convenience of travel and add a layer of protection during global market turbulence.