The Japanese Yen selling exchange rate hits a new high. Is now the time to enter? 4 essential options you must know before currency exchange

In December 2025, the NT dollar to Japanese Yen exchange rate reached 4.85. This exchange rate signals to many—either prepare for a trip to Japan next year or move funds into safe-haven assets amid NT dollar depreciation pressure. But before actually exchanging for Yen, you need to clarify one question: What exactly is the difference between the buy and sell exchange rates?

NT dollar to Yen: Is it worth it?

The rate looks good, but whether it’s cost-effective depends on how you exchange.

From 4.46 at the start of the year to 4.85 now, the Yen has appreciated about 8.7% against the NT dollar. This is quite favorable for investors—whether for short-term hedging or medium-term allocation, the Yen has become a focus. But there’s a trap: Bank cash selling rates are usually 1-2% worse than the spot rate, so exchanging 50,000 NT dollars could result in a loss of over 1,500 NT dollars.

In other words, with the same 50,000 NT dollars, the amount of Yen you get at a bank counter versus online exchange could differ by 200-300 Yen.

Why split into multiple entries?

The latest moves by the Bank of Japan are worth noting. Governor Ueda Kazuo recently made hawkish comments, and the market expects a rate hike to 0.75% on December 19 (a 30-year high), which will support Yen strength. But at the same time, there’s a risk of global arbitrage unwinding—short-term fluctuations of 2-5% are possible.

Therefore, don’t exchange all at once. Enter in 3-4 installments to average risk, which is a smarter approach.

4 ways to exchange currency, with big cost differences

If you have NT$50,000–NT$200,000 to exchange, these four methods each have different costs.

Method 1: Bank counter cash exchange—most traditional, highest cost

Go into a bank branch and exchange NT dollars for Yen cash. Simple and direct, but using the “cash selling rate.”

For example, Taiwan Bank’s cash selling rate on December 10 was about 0.2060 NT$/Yen (roughly 4.85 Yen/NT$). E.SUN Bank charges a handling fee of NT$100 per transaction, and Cathay United Bank charges NT$200.

Exchanging NT$50,000 could result in a loss of NT$1,500–NT$2,000.

Pros: Safe, immediate cash, full denominations
Cons: Rate spread, limited business hours, possible extra fees
Suitable for: Small urgent needs, airport cash on the spot

Method 2: Online exchange, then withdraw at ATM or counter—midway solution

Use bank app or online banking to convert NT dollars into Yen in a foreign currency account, at the “spot sell rate” (about 1% better than cash selling rate). To withdraw cash, go to ATM or counter, incurring an additional handling fee (NT$5–NT$100).

Suppose you use E.SUN Bank’s online exchange and then withdraw at the counter; the fee is the difference in exchange rate, starting at NT$100.

The advantage is: can operate 24/7, observe low-rate points (e.g., NT$ to Yen drops below 4.80) to enter in batches, averaging long-term costs.

Exchanging NT$50,000 might cost you NT$500–NT$1,000.

Pros: Flexible, better rates, average cost possible
Cons: Need foreign currency account, withdrawal fees, suitable for experienced forex investors
Suitable for: Forex traders, planning Yen fixed deposits or long-term holdings

Method 3: Online reservation, pick up at airport—best before departure

Fill in the currency, amount, pickup branch, and date on the bank’s website. After completing online exchange, bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with options to reserve at Taoyuan Airport branch.

Taiwan Bank’s online exchange rate offers about 0.5% better than spot, paying only NT$10 via Taiwan Pay, sometimes with no handling fee.

Exchanging NT$50,000 might cost NT$300–NT$800—this is the lowest among the four methods.

Pros: Good rate, often no fee, airport pickup, no waiting
Cons: Need to book 1-3 days in advance, cannot change branch on short notice
Suitable for: Travelers with plans and confirmed schedules

Method 4: Foreign currency ATM—24/7 access, but with limitations

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen cash directly. SFB (SinoPac) offers a daily limit of NT$150,000 equivalent, with a cross-bank fee of NT$5, and no exchange fee.

There are about 200 ATMs nationwide, but limited in number, and cash may run out during peak times (like airports).

Exchanging NT$50,000 might cost NT$800–NT$1,200.

Pros: Instant, flexible, low cross-bank fee, no counter visit needed
Cons: Few locations, cash may be exhausted, denominations fixed (1000/5000/10000 Yen)
Suitable for: Last-minute cash needs, no time to visit bank

Cost comparison of four methods

After exchanging Yen, what’s next?

Yen shouldn’t just sit in your account earning no interest. Depending on your risk appetite, you can allocate as follows:

Conservative: Yen fixed deposit

Open a foreign currency account, deposit starting from 10,000 Yen, with an annual interest rate of 1.5–1.8%. E.SUN Bank and Taiwan Bank offer this. Suitable for conservative investors.

Medium-term: Yen savings insurance

Cathay and Fubon Life offer Yen savings policies with guaranteed interest rates of 2–3%, suitable for 3–5 years.

Growth: Yen ETFs

Yuanta 00675U tracks Yen index, can buy fractional shares via broker app for dollar-cost averaging, diversifying risk. Management fee is 0.4% annually.

Swing trading: Forex trading

Trade USD/JPY or EUR/JPY directly, capturing exchange rate fluctuations. Both long and short positions, 24-hour trading, suitable for experienced traders.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate is used for physical cash buying/selling (bills/coins), usually 1-2% worse than spot. Spot rate is the FX market’s T+2 settlement price, used for electronic transfers and account conversions, more favorable.

Q: How much Yen can I get with NT$10,000?
Using December 10 cash selling rate of 4.85, NT$10,000 ≈ 48,500 Yen. With spot rate 4.87, about 48,700 Yen.

Q: What ID do I need to exchange currency?
Taiwanese: ID card + passport; foreigners: passport + residence permit. Large amounts (over NT$100,000) require declaration of source of funds. Under 20 need parental accompaniment.

Q: What’s the daily limit for foreign currency ATM withdrawal?
Post-2025 regulations, most banks’ cards have a daily limit of NT$120,000–NT$150,000 equivalent. Other banks follow their issuing bank’s rules. Consider splitting withdrawals or using your bank’s card to avoid cross-bank fees.

Summary: Use the exchange rate spread wisely to maximize Yen value

Yen is no longer just for travel pocket money; it’s also a hedging asset and investment target. Under ongoing NT dollar depreciation pressure, allocating an appropriate proportion of Yen can hedge against Taiwan stock volatility and benefit from Bank of Japan rate hikes.

The core logic is simple: enter at the best buy (or sell) rate, split into multiple entries to diversify risk, and after entering, don’t idle—shift into fixed deposits or ETFs for continued growth. This way, you can enjoy cost-effective travel and add a layer of protection during global market fluctuations.

Start now by making good use of “online exchange + airport pickup” or “foreign currency ATM multiple withdrawals,” keeping costs at a minimum. The savings can then be used to enjoy more delicious meals in Japan.