Is December the best time to exchange Japanese Yen? Master these 4 money-saving tips to get the most out of it

NTD to JPY has reached the 4.85 mark, and more and more people are starting to plan for currency exchange. But did you know? Exchanging 50,000 NT dollars using different methods can result in a price difference of over ###1,500—equivalent to wasting a month’s budget on bubble tea. We’ve directly calculated the latest costs for exchanging to JPY so you can understand how to get the best deal.

Why should you pay attention to exchanging JPY now?

Many think that exchanging JPY is just a temporary action before traveling, but based on market data this year, the role of the yen has changed.

NTD depreciation pressure + JPY appreciation opportunity

From early 2025’s 4.46 to now 4.85, the yen has appreciated over 8.7% in just 11 months. This is not just currency fluctuation but a signal of global central bank policy shifts. The US is gradually entering a rate cut cycle, while the Bank of Japan (BOJ) is on the verge of raising interest rates—recent hawkish comments by Governor Ueda have pushed market expectations of rate hikes to 80%, with a meeting on December 19 expected to raise rates to 0.75% (a 30-year high).

The three roles of the yen

Travel exchange is just the surface; in reality, the yen plays three roles:

• Safe-haven asset: One of the world’s three major safe-haven currencies (along with USD and CHF), capital flows into it during market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, successfully hedging stock market declines.
• Arbitrage tool: Japan’s ultra-low interest rate (~0.5%) makes the yen a “borrowed currency,” with many investors leveraging low-interest yen to fund high-yield USD (currently a 4.0% USD-JPY interest rate differential).
• Investment target: Yen ETFs (like Yuanta 00675U) with an annual management fee of only 0.4%, suitable for small-scale dollar-cost averaging.

Based on our observations, demand for exchanging yen in Taiwan increased by 25% in the second half of the year, no longer just travelers—more investors are participating.

4 cost tests for exchanging 50,000 NT dollars to JPY

Rather than just talking about which method is “best,” let’s look directly at costs. Using 50,000 NT as an example, we estimate the actual loss via different channels in December 2025:

First priority: Online exchange + airport withdrawal (loss of 300-800 NT)

Using Taiwan Bank’s “Easy Purchase” online exchange as an example. The process: fill in amount on website → complete exchange within 24 hours → reserve at airport branch → show ID + notification to receive cash.

Clear cost advantages

• Exchange rate margin: about 0.5% (spot sell rate 4.87)
• Service fee: free at Taiwan Bank, only 10 NT for Taiwan Pay
• Actual received JPY: about 48,700 yen
• Estimated loss: about 300-500 NT

Why recommend this? Taoyuan Airport has 14 Taiwan Bank branches, 2 of which are open 24 hours. If you’re planning to go abroad, this is the most cost-effective reservation method. The only downside is needing to book 1-3 days in advance; branches cannot modify reservations.

Suitable for: travelers with a planned schedule and time before departure.

Second priority: Foreign currency ATM withdrawal (loss of 800-1,200 NT)

Using Chip Financial Card to withdraw yen cash at bank foreign currency ATMs 24/7. For example, with E.SUN Bank, the daily limit from a NT account is 150,000 NT, no exchange fee, cross-bank fee only 5 NT.

Cost analysis

• Exchange margin: about 1.2% (cash buy rate slightly worse)
• Cross-bank fee: 5 NT (if not using the same bank card)
• Actual received JPY: about 48,200 yen
• Estimated loss: about 800-1,000 NT

Key risks Limited ATMs nationwide (~200 units), high peak times may run out of cash. At Taoyuan Airport, during busy times, “temporary out of cash” situations occur, so it’s not recommended to wait until the last minute to withdraw. Note that by the end of 2025, Japanese ATMs will require international cards (Mastercard/Cirrus).

Suitable for: urgent needs without time for counter service, needing immediate withdrawal.

Third priority: Online exchange + counter or foreign currency ATM withdrawal (loss of 500-1,000 NT)

Using bank app to convert NT to JPY and deposit into foreign currency account (spot rate about 4.87). For cash withdrawal, additional fee applies (minimum 100 NT). E.SUN Bank example: withdrawal fee about 100 NT equivalent, cross-bank fee 5-100 NT.

Cost analysis

• Online exchange rate: 4.87
• Withdrawal fee: 100+ NT
• Actual received JPY: about 48,500 yen
• Estimated loss: about 500-800 NT

Advantages Allows for phased entry to average costs, suitable for observing rate fluctuations and buying on dips. Many combine this with yen fixed deposits (current annual interest 1.5-1.8%).

Suitable for: investors with forex experience wanting to hold yen long-term.

Fourth priority: Cash at counter exchange (not recommended, loss of 1,500-2,000 NT)

Carrying NT cash directly to banks or airport for cash exchange. Although most convenient, it costs the most.

Cost test For example, Taiwan Bank’s December 2025 cash sell rate is only 4.85 (about 0.5% below spot), some banks add 100-200 NT handling fee.

50,000 NT yields only about 48,250 yen, with a loss of 1,500-2,000 NT. This is like giving away a month’s living expenses for free.

Only suitable scenario Urgent airport needs (e.g., discovering you forgot yen after boarding), or for elderly who are not familiar with online operations.

Must-read before exchanging for JPY: exchange rates, fees, denominations

Cash rate vs spot rate, what’s the difference?

Cash Rate = the buy/sell rate banks offer for physical bills/coins, paid on the spot. Advantage: immediate cash; disadvantage: usually 1-2% worse than spot rate.

Spot Rate = the exchange rate settled within T+2 in the forex market, used for electronic transfers, import/export, foreign currency accounts. Closer to international market price but takes 2 business days.

Example:

• Spot sell rate 4.87 → 10,000 NT = 48,700 yen
• Cash sell rate 4.85 → 10,000 NT = 48,500 yen
• Difference: 200 yen (about NT$40)

Comparison of cash sell rates at various banks (2025/12/10)

Foreign currency ATM withdrawal limits (new policy from October 2025)

Is now a good time to exchange? Key December window analysis

Short-term trend

The NT dollar at 4.85 against JPY is near the highest in the past three months. Based on BOJ rate hike expectations, the yen is supported short-term but also faces risks of global arbitrage unwinding. USD/JPY has fallen from 160 early this year to 154.58, with potential short-term oscillation around 155. But in the medium to long term (6-12 months), it’s forecasted to stay below 150.

Investment advice

Although the yen is a safe-haven currency, it also has two-way volatility. For hedging Taiwan stocks, consider phased entry:

• First batch (now): exchange 2-3 million NT, try different channels, choose the lowest cost
• Second batch (Jan-Feb): observe BOJ rate hike results, add more if yen strengthens
• Third batch (Mar): decide based on travel needs during Spring Festival

Avoid exchanging all at once to prevent short-term retracement losses.

After exchanging yen, four ways to increase value

Don’t let your yen sit idle without interest—consider these options:

1. Yen fixed deposit (conservative choice)

• Where: E.SUN, Taiwan Bank foreign currency accounts
• Minimum: 10,000 yen
• Annual interest: 1.5-1.8%
• Suitable for: capital preservation priority

2. Yen savings insurance (medium-term hold)

• Where: Cathay, Fubon Life
• Guaranteed interest: 2-3%
• Features: protection + returns
• Suitable for: those needing security

3. Yen ETF dollar-cost averaging (growth-oriented)

• Codes: Yuanta 00675U, 00703
• Management fee: 0.4%
• Features: track yen index, fractional shares available
• Suitable for: long-term asset allocation

4. Forex swing trading (advanced)

• Targets: USD/JPY, EUR/JPY
• Platforms: Mitrade, other forex brokers
• Advantages: zero commission, low spreads, 24-hour trading
• Features: long/short, stop-loss/take-profit tools
• Suitable for: experienced investors

Year-end FAQ for exchanging JPY

Q: How much yen can I get for 10,000 NT now?

Depending on method:

• Counter cash exchange: about 48,500 yen (loss)
• Online exchange: about 48,700 yen (better)
• Calculation: Yen amount = NT amount × current rate

Q: What to bring for counter exchange?

Taiwanese: ID + passport Foreigners: Passport + residence permit If online reservation: bring transaction notification Large amount (>100,000 NT): may need source of funds declaration Under 20: need parent’s consent + guardian

Q: Why is ATM exchange cheaper than counter?

Because ATMs use closer-to-spot rates (not cash sell rate), and cross-bank fee is only 5 NT. But risk: peak times may run out of cash.

Summary: Golden rules for year-end yen exchange

The yen is no longer just pocket money for travel but also an asset with hedging functions. December is a perfect window for both travel season and central bank policy shifts.

Core tips

1. Prioritize online exchange + airport withdrawal to save most (loss of only 300-800 NT)
2. Phased exchange to reduce rate risk
3. Don’t let it sit idle—combine with fixed deposits or ETFs for growth
4. Plan ahead—peak times for foreign currency ATMs are often out of stock

Master these four strategies to not only enjoy your trip but also add a layer of protection amid global market fluctuations. Start exchanging yen now.