Japanese Yen exchange rate hits new high, airport rush to exchange for new bills — When is the best time to exchange to minimize losses? Four major channels tested and compared

NTD to JPY has reached a recent high again. By mid-December 2025, the NTD to JPY exchange rate has hit 4.85, appreciating over 8% from the beginning of the year at 4.46. The resurgence of travel to Japan and the influx of risk-averse buying have led to more people exchanging for JPY. But did you know? Choosing the wrong channel for currency exchange could cost an extra NT$1,500. We tested the four most common currency exchange methods in Taiwan to see which one is the most cost-effective.

Why is JPY so hot right now?

The popularity of JPY isn’t just due to travel season; there are deeper financial reasons behind it.

Travel and shopping demand continues to rise. Japan’s credit card penetration is only 60%, and cash remains the main payment method. Shopping in Tokyo, skiing in Hokkaido, vacations in Okinawa—most stores only accept cash. Purchasing agents and Japanese online shopping often require direct JPY payments. In the second half of 2025, Taiwan’s currency exchange demand grew by 25% compared to the first half, mainly driven by the recovery of tourism.

JPY as a global safe-haven currency becomes more attractive. JPY ranks alongside USD and CHF as a major safe-haven currency. Japan’s stable economy and low debt attract capital during market turbulence. For example, during the Russia-Ukraine conflict in 2022, the JPY appreciated 8% within a week, effectively hedging stock market declines. For Taiwanese investors, holding JPY isn’t just for leisure but also a way to protect Taiwan stocks.

The Bank of Japan is on the verge of raising interest rates, boosting JPY appreciation expectations. Governor Ueda Kazuo’s recent hawkish comments have pushed market expectations of rate hikes to 80%. The USD/JPY rate has fallen from a high of 160 at the start of the year to around 154.58. The market generally predicts further medium- to long-term JPY appreciation, and the NT$ to JPY rate could rise another 2-3% before the end of the year. In other words, current exchange gains from converting to JPY are quite substantial.

Four major channels to exchange JPY, with big cost differences

There are multiple ways to exchange JPY. The key difference lies in the type of exchange rate—whether using the “cash selling rate” (less favorable, about 1-2% below the market rate) or the “spot selling rate” (more favorable). Let’s examine each.

Method 1: Bank counter cash exchange—most traditional but most expensive

Bring NT$ cash directly to a bank or airport counter to exchange for JPY cash on the spot. Simple to operate, but uses the “cash selling rate,” which is the highest cost. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 NT$/JPY (meaning NT$1 exchanges for 4.85 JPY). Exchanging NT$50,000 would cost NT$1,500-2,000 in fees.

Comparison of bank cash selling rates and handling fees (updated 2025/12/10):

When is this suitable? For small, urgent needs (like at the airport) or for those unfamiliar with online operations.

Method 2: Online currency exchange into foreign currency account—ideal for small investments

Use bank app or online banking to convert NT$ to JPY at the “spot sell rate” (about 1% better than cash rate), and deposit into a foreign currency account. No need to go out; operate 24/7, and can buy in installments. If you need to withdraw cash later, do so at counters or foreign currency ATMs, incurring additional exchange fees (from NT$100+).

Estimated cost for exchanging NT$50,000: NT$500-1,000.

When is this suitable? For those experienced in forex, planning to hold JPY long-term, or investing in JPY deposits (annual interest rate around 1.5-1.8%).

Method 3: Online currency conversion with airport pickup—most convenient pre-trip option

No need to open a foreign currency account in advance. Simply select currency, amount, pickup branch, and date on the bank’s website, transfer funds, and then pick up with ID and transaction notice at the counter. Taiwan Bank’s “Easy Purchase” service offers this, with appointment options at airports. The exchange rate advantage is about 0.5%, and handling fees are often waived (e.g., NT$10 via TaiwanPay).

Taoyuan Airport has 14 Taiwan Bank branches, 2 of which are open 24 hours, making pre-departure cash pickup very convenient. Estimated cost for NT$50,000: NT$300-800.

When is this suitable? For planned travelers who want to pick up fresh cash at the airport. The only downside is the need for advance booking (at least 1-3 days).

Method 4: Foreign currency ATM withdrawal—most flexible for sudden needs

Use a chip-enabled financial card to withdraw JPY cash from foreign currency ATMs, available 24/7. Deducts from your NT$ account with a cross-bank fee of NT$5, no exchange fee. However, the number of ATMs is limited (~200), with fixed denominations (1,000/5,000/10,000 JPY), and cash may run out during peak times (airports, stations).

SinoPac Bank’s foreign currency ATMs limit withdrawals to NT$150,000 per day from your NT$ account. Estimated cost for NT$50,000: NT$800-1,200.

When is this suitable? For those with no time to visit banks, needing quick cash, or with no high denomination requirements.

Summary table of 4 methods—pick the cheapest in one second

Is now the right time to exchange JPY? Analysis of timing and strategy

Yes, but operate in installments.

Currently, the NT$ to JPY rate is about 4.85, up 8.7% from 4.46 at the start of the year. But JPY remains volatile—USD/JPY dropped from 160 to around 154.58, with a short-term test of 155, but medium- to long-term forecasts suggest it could go below 150.

In other words, JPY still has slight appreciation potential. The short-term risk involves global arbitrage unwinding, which could cause 2-5% fluctuations.

Recommended to buy in parts, not all at once. For a budget of NT$50,000-200,000, split into 3-4 purchases weekly or biweekly to average the cost. This way, you can benefit from appreciation while avoiding risks from sudden exchange rate swings.

After exchanging JPY, don’t let it just sit idle

Many people exchange JPY and leave it earning interest—this is a waste. JPY has both hedging and income properties, so further allocation makes sense.

JPY fixed deposits: Conservative choice. Banks like E.SUN and Taiwan Bank allow online deposits from as low as 10,000 JPY, with annual interest rates of 1.5-1.8%.

JPY savings insurance: Medium-term holding. Cathay Life and Fubon Life offer JPY policies with guaranteed rates of 2-3%, suitable for those who prefer not to operate frequently.

JPY ETFs (00675U, 00703): Growth-oriented options. For example, Yuanta 00675U tracks the JPY index and can be bought as fractional shares via brokerage apps with a management fee of 0.4% annually.

Forex trading: Advanced approach. Trade USD/JPY or EUR/JPY on forex platforms to catch exchange rate movements. Benefits include long/short positions, 24-hour trading, and small capital requirements.

Quick answers to common questions

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

Cash rate (Cash Rate) is used for physical cash buying/selling; it’s less favorable but settled immediately. Spot rate (Spot Rate) is used for electronic transfers (T+2 settlement); it’s more favorable, close to international market prices. Simply put, spot rate saves money but takes two business days.

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

Using Taiwan Bank’s cash rate of 4.85, NT$10,000 ≈ 48,500 JPY. Using the spot rate of 4.87, about 48,700 JPY—difference of roughly 200 JPY (NT$40).

Q: What documents are needed to exchange JPY?

For locals: ID card + passport. For foreigners: passport + residence permit. If booking online, bring transaction notice. For large amounts (over NT$100,000), fill out source of funds declaration. Minors under 20 need a parent present.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

Post-October 2025, many banks have tightened limits:

Note: Limits have generally decreased to NT$100,000-150,000. Cash shortages during peak times are common; plan ahead or split withdrawals.

Final advice

JPY is no longer just for travel pocket money; it’s an asset with hedging and investment potential.

For beginners, the simplest approach is to choose “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM withdrawal”—low cost, simple process. After exchange, consider moving funds into fixed deposits or ETFs, or try small-scale trading. This way, you can enjoy cost-effective travel and add a layer of protection against Taiwan stock market volatility. Remember to buy in installments and keep an eye on central bank movements to minimize costs and maximize gains.