New Trend in Yen Investment! NT Dollar Exchange Rate Hits New High, Full Breakdown of 4 Major Plans

Is the NT$ to JPY exchange rate at 4.85 really the best deal? Do you know how to exchange money most cost-effectively?

As of December 10, 2025, the NT$ to JPY exchange rate has surged to a new high of 4.85, with travel to Japan and JPY hedging demand significantly increasing. But do you know? Choosing the wrong currency exchange channel could cost you several cups of bubble tea more.

Compared to the relatively stable NT$ to AUD exchange rate, the JPY is more volatile and offers more arbitrage opportunities. We have tested four mainstream currency exchange methods in Taiwan using a real case of 50,000 NT$, to show you which method makes your JPY most valuable.

Four Practical NT$ to JPY Exchange Channels Compared

1. Traditional Counter Exchange: Safest but Most Expensive

Exchange cash directly at banks or airport counters for JPY notes. Simple to operate but with the highest costs. Banks use the “cash selling rate” (1-2% worse than the market spot rate), plus possible handling fees, resulting in the largest loss.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 NT$/JPY (1 NT$ = 4.85 JPY). Some banks also charge an additional 100-200 NT$ handling fee. Exchanging 50,000 NT$, the loss starts at least from 1,500 NT$.

When to use? Only for urgent airport needs or for those unfamiliar with online operations. Not recommended for large pre-exchange amounts.

2. Online Exchange + Counter Pickup: Preferred by Investors

Use bank apps or online banking to convert NT$ into JPY and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash rate). When cash is needed, pick it up at the counter or foreign currency ATM, with handling fees starting from 100 NT$.

This method is best suited for those with forex investment experience, allowing for phased entry to average costs. For example, buy in parts when NT$ to JPY drops below 4.80, reducing average cost and avoiding exchange rate risks.

Cost estimate (50,000 NT$): Loss of 500-1,000 NT$, saving over half compared to counter exchange.

Advanced tip: After exchanging to JPY, don’t just leave it idle. Consider placing it in a JPY fixed deposit (annual interest rate 1.5-1.8%) or a JPY insurance policy (guaranteed interest rate 2-3%) to generate passive income.

3. Online Currency Settlement + Airport Pickup: Must for Travelers

No need to open a foreign currency account. Simply fill in the amount, branch, and date on the bank’s official website, complete the transfer, then pick up cash at the counter. Taiwan Bank’s “Easy Purchase” online settlement has no handling fee (pay with TaiwanPay for only 10 NT$), with about 0.5% exchange rate advantage.

The biggest benefit is the ability to reserve airport branch pickup. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, making it super convenient to get cash before departure.

Cost estimate (50,000 NT$): Loss of 300-800 NT$, the best pre-trip planning option.

Note: Requires 1-3 days advance reservation. Pickup times are limited by bank hours, and branches cannot change on short notice.

4. Foreign Currency ATM Withdrawal: Most Flexible

Use a chip-enabled debit card at foreign currency ATMs to withdraw JPY cash. Supports 24-hour, interbank transactions, with only a 5 NT$ fee deducted from your NT$ account. No reservation needed, immediate withdrawal.

Fubon Bank’s foreign currency ATM has a daily withdrawal limit of 150,000 NT$ equivalent, with no currency exchange fee. China Trust Bank’s limit is 120,000 NT$.

Disadvantages: Only about 200 ATMs nationwide, with fixed denominations (1,000/5,000/10,000 JPY). During peak times (airports, year-end), cash may run out. It’s best not to wait until the last minute to withdraw.

Cost estimate (50,000 NT$): Loss of 800-1,200 NT$, suitable for urgent needs or when unable to visit banks.

Current JPY Exchange Rate Analysis: Is Now a Good Time to Exchange?

Short-term view: Yes, but operate in phases.

In the second half of 2025, the NT$ to JPY has appreciated by 8.7% (from 4.46 at the start of the year to 4.85 now). For Taiwanese investors, the forex gains from exchanging to JPY are quite attractive. Especially under NT$ depreciation pressure, using JPY as a hedge becomes more necessary.

The Bank of Japan (BOJ) is in a rate hike cycle, with Governor Ueda’s hawkish comments pushing market expectations of an 80% chance of a 0.25 basis point increase to 0.75% on December 19 (a 30-year high). JGB yields have hit a 17-year high of 1.93%, providing strong long-term support for the JPY.

Mid-term outlook: Volatility risk exists.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58. Short-term, it may rebound to 155, but medium to long-term, it’s expected to stay below 150. Arbitrage closing risks could cause 2-5% fluctuations. It’s advised not to exchange the full amount at once.

Phased entry strategy: first exchange 40%, second 30%, and reserve 30% for lower levels. This way, you can seize current favorable rates while hedging against future volatility.

Real-time Comparison of JPY Cash Selling Rates at Various Banks

Below are the latest rates as of December 10, 2025 (for reference only, check bank websites for actual rates):

Common Questions for Beginners on JPY Exchange

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

Cash rate is the rate banks offer for physical bills and coins, settled on the spot, but usually 1-2% worse than the spot rate. The spot rate is the forex market rate settled T+2, used for electronic transfers and foreign currency accounts, offering better rates.

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

Calculate using: 【JPY amount = NT$ amount × current rate】. Using Taiwan Bank’s cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 JPY; with the spot rate of 4.87, about 48,700 JPY, a difference of 200 JPY (about NT$40).

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

Taiwanese: ID card + passport; foreigners: passport + residence permit. If pre-booked online, bring transaction notification. Under 20 years old need a parent present. Large amounts (over 100,000 NT$) may require source of funds declaration.

Q: Is there a daily withdrawal limit at foreign currency ATMs?

Post-2025 regulations, limits vary: Fubon Bank up to 150,000 NT$/day, China Trust 120,000 NT$/day, E.SUN Bank 150,000 NT$/day (including debit card). Digital accounts may have even lower limits, around 100,000 NT$. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Investment Options After Exchanging to JPY

Don’t let the money sit idle after exchanging. Here are four suitable options for small-scale beginners:

1. JPY Fixed Deposit — Most stable. Deposit online into E.SUN or Taiwan Bank foreign currency accounts, starting from 10,000 JPY, with annual interest rates of 1.5-1.8%.

2. JPY Insurance Policy — Medium-term holding. Cathay or Fubon savings insurance, with guaranteed 2-3% interest, providing both protection and returns.

3. JPY-related Investments — Seek growth. Invest in products tracking the JPY index, diversified through brokers.

4. Forex Swing Trading — Capture volatility opportunities. JPY is one of the most liquid safe-haven currencies globally, with moderate volatility suitable for short-term traders learning exchange rate trends.

Risks When Exchanging to JPY

While JPY is one of the world’s three major safe-haven currencies (alongside USD and CHF), it also faces two-way fluctuations:

• BOJ rate hikes — Boost JPY attractiveness but may attract more arbitrage closing trades.
• Geopolitical shocks — Tensions in Taiwan Strait or Middle East can spike JPY demand for hedging, causing short-term appreciation; easing risks may lead to depreciation.
• USD strength/weakness — US policy shifts impact arbitrage trading, affecting JPY.

It’s recommended that currency exchange for investment purposes adopts phased strategies to avoid concentrated risks.

Summary

The JPY is no longer just travel money; it’s an asset with hedging and investment value. Whether for your Japan trip next year or asset allocation amid NT$ depreciation, following the “phased exchange + active post-exchange allocation” principle can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer into fixed deposits or insurance based on needs, creating passive income. This way, you can enjoy your trip and also add a layer of protection amid global market fluctuations.