Is exchanging New Taiwan Dollars for Japanese Yen cost-effective? Master these 4 major currency exchange methods to avoid pitfalls

In December 2025, the New Taiwan Dollar (NTD) to Japanese Yen (JPY) exchange rate reached 4.85, prompting many to seriously consider the timing of currency exchange. Whether for a year-end trip to Japan or asset allocation under the pressure of NTD depreciation, choosing the right currency exchange channel can save you thousands of dollars. Today, we’ll reveal the key points of four different currency exchange methods.

The Three Key Backgrounds for Exchanging NTD to JPY

1. Why is it worth exchanging to Yen?

On the surface, Yen is just a travel tool—shopping, dining, vacation. But in reality, Yen plays a crucial role in the global financial markets.

Travel and Consumption: Japan still primarily uses cash (credit card penetration is only 60%), so purchasing, studying abroad, working holidays all require cash or electronic payments in Yen.

Financial Investment Perspective: Yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc). Japan’s economy is stable with low debt, and during market volatility, funds tend to flow into Yen. For example, during the Russia-Ukraine conflict in 2022, Yen appreciated 8% in a single week, effectively hedging against global stock market declines. For Taiwanese investors, holding Yen can provide protection during Taiwan stock market fluctuations.

Additionally, Japan maintains a long-term ultra-low interest rate policy (only 0.5%), making Yen a currency for arbitrage financing—borrowing Yen at low interest to invest in higher-yield USD, with a USD-JPY interest rate spread of 4.0%. When risk increases, closing the position by buying back Yen is common among professional investors.

2. Is now a good time to exchange Yen?

As of December 10, 2025, the NTD/JPY rate is about 4.85, up 8.7% from 4.46 at the start of the year. This appreciation is significant in foreign currency investments, especially considering the pressure on the NTD to depreciate.

Currency exchange demand in the second half of the year grew by 25%, mainly driven by travel recovery and increased hedging needs.

Short-term exchange rate forecast: The Bank of Japan Governor Ueda Kazuo recently made hawkish comments, pushing up rate hike expectations to 80%, with a 0.25bps increase to 0.75% at the December 19 meeting (a 30-year high). Japanese government bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58; short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest it will stay below 150.

Exchange advice: It’s advisable to stagger your purchases now to avoid the risk of rate fluctuations from a single large transaction. The Yen may fluctuate 2-5% in the short term, but its safe-haven attribute remains strong in the long term.

Four Practical Methods to Exchange NTD to JPY

Method 1: Bank Counter Cash Exchange (Most traditional but highest cost)

Bring cash directly to a bank branch or airport counter to exchange for Yen notes. Using the “cash selling rate” (which is 1-2% worse than the spot rate), the overall cost is higher.

Taiwan Bank December 10, 2025 rate reference: Cash selling rate is about 0.2060 TWD/JPY (roughly 4.85 Yen per 1 TWD).

Pros and Cons: Advantages: Safe, reliable, denominations available (1,000, 5,000, 10,000 Yen), staff assistance. Disadvantages: Higher exchange rate spread, limited business hours (9:00-15:30 on weekdays), possible additional handling fees.

Suitable for: Urgent needs (e.g., last-minute at the airport) or unfamiliar with online platforms.

Estimated cost: Exchanging 50,000 TWD costs about 1,500-2,000 TWD in losses.

Bank cash selling rates and fees (2025/12/10):

Method 2: Online Currency Exchange + ATM or Counter Withdrawal (Moderate option)

Use online banking app to transfer TWD to a foreign currency account in Yen, at the “spot sell rate” (about 1% better than cash selling rate). Then, withdraw Yen cash at an ATM or counter. Withdrawal incurs a currency conversion fee, starting from around 100 TWD.

For example, after exchanging via E.SUN Bank app, withdrawing Yen cash will involve a fee based on the rate difference.

Pros and Cons: Advantages: 24/7 operation, allows averaging costs over multiple transactions, better exchange rate than cash. Disadvantages: Need to open a foreign currency account, withdrawal fees (5-100 TWD cross-bank fee).

Suitable for: Those experienced with forex, using foreign currency accounts, or planning to buy Yen deposits (current annual interest 1.5-1.8%).

Estimated cost: 50,000 TWD exchange costs about 500-1,000 TWD in losses.

Method 3: Online Currency Conversion + Airport or Branch Pickup (Best for planned trips)

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up at the counter. Taiwan Bank and Mega Bank offer this service, with appointment options at airports.

Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (pay via TaiwanPay, only 10 TWD), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours).

Pros and Cons: Advantages: Better rates, often no handling fee, can choose airport pickup, avoid crowds. Disadvantages: Need to book 1-3 days in advance, pickup during bank hours, branch location cannot be changed.

Suitable for: Planned travelers who want to pick up Yen at the airport.

Estimated cost: 50,000 TWD exchange costs about 300-800 TWD in losses.

Method 4: Foreign Currency ATM Withdrawal (Most flexible)

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash, available 24/7 and cross-bank. Deducts only 5 TWD cross-bank fee from your TWD account, no exchange fee. Daily withdrawal limit at SFB’s foreign currency ATMs is 150,000 TWD equivalent.

About 200 ATMs nationwide, but denominations are fixed (1,000, 5,000, 10,000 Yen), and cash may run out during peak times.

Pros and Cons: Advantages: Instant withdrawal, high flexibility, low cross-bank fee. Disadvantages: Limited locations and denominations, cash shortages at peak times.

Suitable for: Those with no time to visit banks or needing urgent cash.

Estimated cost: 50,000 TWD exchange costs about 800-1,200 TWD in losses.

ATM withdrawal limits (after October 2025 adjustment):

Comparison of the 4 Currency Exchange Methods

Conclusion: For a budget of 50,000-200,000 TWD, a combination of “online currency exchange + foreign ATM withdrawal” offers a good balance of cost and flexibility.

Asset Allocation After Exchanging TWD to Yen

Once converted, the Yen remains idle without interest. Based on risk appetite, consider the following allocations:

1. Yen Fixed Deposit (Conservative): Open foreign currency accounts at E.SUN or Taiwan Bank, with minimum 10,000 Yen, annual interest 1.5-1.8%.

2. Yen Insurance Policies (Mid-term): Cathay or Fubon savings insurance with guaranteed 2-3% interest, suitable for 3-5 year plans.

3. Yen ETFs (Growth): Yuanta 00675U tracking Yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging.

4. Forex Trading (Speculative): Trade USD/JPY or EUR/JPY currency pairs, zero commission, low spreads, 24-hour trading, suitable for experienced investors.

Risk Reminder: BOJ rate hikes favor Yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may weaken the Yen. Short-term fluctuations of 2-5% are normal; diversify investments accordingly.

Common FAQs on Exchanging TWD to Yen

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

Cash rate applies to physical cash transactions, usually 1-2% worse than spot rate; spot rate is used for electronic transfers and interbank settlements, more favorable but settled T+2.

Q: How much Yen can I get with 10,000 TWD?

Using Taiwan Bank’s December 10, 2025 rate: cash selling rate ~4.85, so 10,000 TWD ≈ 48,500 Yen. Using spot rate (~4.87), about 48,700 Yen.

Q: What do I need to bring for counter exchange?

ID + passport (foreigners bring passport + residence permit). For online booking, also bring transaction notice. Under 20 years old need parent’s consent; large amounts (>100,000 TWD) require source declaration.

Q: Are there withdrawal limits at foreign currency ATMs?

Different banks have different limits. Usually, your bank card allows 120,000-150,000 TWD per day; other bank cards often have 20,000 TWD per transaction. Consider spreading withdrawals or using your own bank card to reduce cross-bank fees.

Summary

Exchanging TWD to Yen has become a strategic asset allocation for hedging and investment. With the year-end travel season and hedging needs rising, now is a good time to exchange, but the key is to divide your purchases, leverage platform differences, and avoid sitting on all at once.

Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift into deposits, ETFs, or trading based on needs. This approach makes travel more cost-effective and adds a layer of protection amid global market volatility. Next time you exchange TWD, don’t just go to the bank counter—explore smarter options.