Yen exchange tips! The secret to paying thousands less on NT$50,000 is here

By the end of 2025, the Taiwan dollar has risen to 4.85 against the Japanese yen, tempting those planning to travel abroad or hedge their positions. But did you know? Using the same NT$50,000 to buy yen through the wrong method could cost you an extra NT$1,500, equivalent to a big meal.

The key is that many think exchanging yen is just a matter of going to the bank, but in fact, there are four channels with startlingly different costs. More importantly, not only tourists are exchanging yen now—investors are also positioning themselves—because the yen is one of the world’s three major safe-haven currencies. Similar to USD/JPY logic, it’s all about risk diversification.

Why is exchanging yen especially popular now?

In the first half of the year, the NT$ to JPY rate was only 4.46, but in just a few months, it has risen to 4.85, a cumulative appreciation of 8.7%. For Taiwanese investors, this means the forex gain from exchanging yen is already substantial, especially amid the NT$ facing depreciation pressures.

Not only the investment circle is active; travel demand is also rebounding. Bank data shows a 25% increase in foreign exchange demand in the second half, mainly driven by two factors: one, the recovery of Japanese tourism (most stores still only accept cash); two, savvy investors making hedging allocations.

Why is the yen worth hedging? Simply put, Japan’s economy is stable with low debt, and international funds tend to flow into yen during turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, enough to buffer stock market declines. For Taiwanese investors, exchanging yen is like adding an “insurance hedge” for Taiwan stocks.

What are the 4 ways to exchange yen, and where are the cost differences?

Method 1: Foreign currency ATMs (most convenient but limited)

Use a chip-enabled financial card at bank foreign currency ATMs to withdraw yen, available 24/7. Cross-bank withdrawals cost only NT$5 per transaction. E.SUN Bank’s foreign currency ATMs support direct NT$ account withdrawals, with a daily limit of NT$150,000.

Advantages: Instant access, maximum flexibility, ideal for urgent needs.
Disadvantages: Only about 200 locations nationwide, fixed denominations (1,000/5,000/10,000 yen), cash often sold out during peak times.
Estimated cost: NT$50,000 roughly NT$800–1,200 less.

Method 2: Online currency exchange + airport pickup (must-have for planned travelers)

Book via bank website, fill in amount, pick-up branch, and date. Using TaiwanPay costs only NT$10 in fees. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee, offers 0.5% better rate, and allows pickup at airport branches (Taoyuan Airport has 14 locations, 2 open 24 hours).

Advantages: Best exchange rates, often no handling fee, no extra withdrawal costs.
Disadvantages: Need to book 1-3 days in advance; branch changes not allowed.
Estimated cost: NT$50,000 roughly NT$300–800 less.

Method 3: Online exchange + over-the-counter withdrawal (for those with foreign currency accounts)

Transfer NT$ to yen via app into a foreign currency account, using spot rate (about 1% better than cash selling rate). If cash is needed, withdrawal at counters or ATMs incurs a spread fee starting around NT$100.

Advantages: 24/7 operation, suitable for phased entry to average costs, can also invest in yen deposits (around 1.6% annual interest).
Disadvantages: Need to open a foreign currency account first; cash withdrawal fees apply.
Estimated cost: NT$50,000 roughly NT$500–1,000 less.

Method 4: Bank over-the-counter cash exchange (most traditional but most expensive)

Bring NT$ directly to bank or airport counter and exchange at “cash selling rate.” For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/JPY (roughly 4.85 yen per NT$). Some banks add NT$100–200 handling fee.

Advantages: Safe, reliable, full denominations, staff assistance.
Disadvantages: Worst exchange rate (1-2% worse than spot), limited by business hours, extra handling fees.
Estimated cost: NT$50,000 roughly NT$1,500–2,000 less.

Comparing bank rates and fees as of December 10, 2025:

Is exchanging yen now worthwhile?

Simple answer: Yes, but do it in phases.

The Bank of Japan Governor Ueda recently signaled a hawkish stance, with market expectations of a 0.25 bps rate hike to 0.75% on December 19 (a 30-year high). Japanese bond yields have hit 1.93%, a 17-year high. Meanwhile, the US is in a rate-cut cycle, and the US-Japan interest rate spread has narrowed from 4.0% at the start of the year—posing risks for USD/JPY arbitrage traders.

Technically, USD/JPY has fallen from 160 at the start of the year to 154.58, with a short-term rebound to 155 possible, but medium to long-term forecasts suggest below 150. For investment purposes, yen as a safe-haven currency is suitable for hedging Taiwan stock volatility, but short-term risks include arbitrage unwinding, with potential swings of 2-5%.

Key advice: stagger your entries, avoid all-in exchanges. For example, split into 3-4 parts, entering when NT$ to JPY is below 4.80, to average costs and reduce risks.

After exchanging yen, don’t let it sit idle

If you exchange yen but have no concrete plan, it’s a waste of potential gains. Here are four options suitable for small-scale beginners:

Yen deposits: Stable, open a foreign currency account online at E.SUN/Taiwan Bank, starting from 10,000 yen, with 1.5-1.8% annual interest.
Yen insurance policies: Medium-term holding, buy savings insurance from Cathay or Fubon Life, with guaranteed 2-3% interest.
Yen ETFs: Growth-oriented, like Yuanta 00675U tracking yen index, buy fractional shares via broker apps, with 0.4% annual management fee, suitable for dollar-cost averaging.
Forex swing trading: Advanced players can trade USD/JPY or EUR/JPY directly on platforms like Mitrade, 24-hour trading, long/short, low commissions, but requires understanding exchange rate volatility.

Quick Q&A

Q: What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical cash, convenient for immediate pickup but usually 1-2% worse than the international market. Spot rate is the FX market’s T+2 settlement rate, closer to real market value, more favorable but requires waiting.

Q: How much yen for NT$10,000?
Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen—difference of roughly 200 yen (NT$40).

Q: What to bring for over-the-counter exchange?
Locals: ID card + passport; foreigners: passport + residence permit; companies: business registration; online booking: transaction notice. Under 20 need parent present; amounts over NT$100,000 may require source declaration.

Q: What’s the daily withdrawal limit at foreign currency ATMs?
As of October 2025, most banks limit to NT$100,000–150,000 per day. Our bank card limit is higher; others around NT$20,000 per transaction. Use your bank’s card to avoid cross-bank fee of NT$5 per transaction.

Summary: Save thousands with smart currency exchange

Yen is no longer just for travel “pocket money”—it’s an asset with hedging and investment value. With the NT$ depreciation pressure in 2025, the 8.7% appreciation of yen is evident.

The smartest approach: stagger your exchanges + don’t leave it idle after. Beginners can start with Taiwan Bank’s online exchange + airport pickup or foreign currency ATMs, then move into deposits, ETFs, or small-scale swing trades as needed. This way, you can enjoy travel savings and add a layer of protection during market turbulence.

Remember, with the same NT$50,000 budget for yen, choosing the right method can save you thousands—enough for several delicious wagyu meals in Japan.