The Japanese Yen exchange rate has risen to 4.85. What's the smartest amount to exchange now?

By December 2025, the NT$ to Japanese Yen exchange rate has reached 4.85, appreciating by 8.7% compared to 4.46 at the beginning of the year. How much Japanese Yen should I exchange for a trip to Japan? This question has become especially worth pondering — not just for travelers, but also for small-scale investors.

First look at the trend, then decide how much to exchange

Recently, the Bank of Japan has been making hawkish statements, with Governor Ueda hinting that a rate hike is imminent. Market expectations for rate increases have reached 80%, with a projected hike to 0.75% at the December 19 meeting (a 30-year high). Japan’s bond yields have hit a 17-year high of 1.93%, and USD/JPY has fallen from the year’s high of 160 to 154.58.

What does this mean? In the short term, the yen might fluctuate around 155, but medium to long-term forecasts suggest it could dip below 150. For those needing to exchange yen for a trip to Japan, now is a relatively good time, but you shouldn’t exchange all at once. Market observations show that Taiwan’s foreign exchange demand increased by 25% in the second half of the year, mainly driven by a tourism recovery and risk-hedging capital allocation.

Different amounts, different strategies

Many think that exchanging yen just involves walking into a bank, but in reality, using different channels for the same NT$50,000 can result in a cost difference of NT$1,000-2,000.

Small amounts under NT$50,000 for travel: Suitable for “online currency exchange + airport pickup” or “foreign currency ATMs,” saving time and effort. Taiwan Bank’s Easy Purchase online exchange offers fee-free service (only NT$10 via Taiwan Pay), with about 0.5% favorable exchange rate, keeping costs within NT$300-800.

Medium amounts NT$50,000 to NT$200,000 for investments: Recommend a mixed approach. First, use online exchange to transfer NT$ into a foreign currency account (using spot sell rate, about 1% better than cash exchange). When urgent needs arise, withdraw cash via foreign currency ATMs. This method offers better rates and flexibility. Cost approximately NT$500-1,000.

Large amounts over NT$200,000: Should be bought in installments to avoid exposure to exchange rate volatility. Observe periods when NT$ to JPY drops below 4.80, and invest in stages to average the cost. Consider transferring part of the funds into JPY time deposits (annual interest rate 1.5-1.8%) or JPY ETFs (such as Yuanta 00675U) to secure stable returns.

Four practical currency exchange channels comparison

In-person currency exchange is the most traditional and old-fashioned option. Bring cash NT$ to a bank or airport counter, selling at the cash rate (1-2% lower than spot). For example, Taiwan Bank’s cash sell rate is about NT$0.2060 per JPY. It’s safe and offers full denominations, but requires operating hours and may incur additional fees, making it the most expensive.

Online exchange + in-person withdrawal improves efficiency. Transfer NT$ to JPY in a foreign currency account via internet banking, enjoying a better spot sell rate. When cash is needed, withdraw at counters or ATMs. This method operates 24/7, allowing staggered purchases to average the cost, suitable for those experienced with forex. The only downside is a withdrawal fee starting at NT$100.

Online currency exchange is the best pre-trip booking option. No need for a foreign currency account; fill in the amount and branch on the official website, and you can pre-arrange airport pickup. Taiwan Bank and Mega Bank offer this service, with multiple branches at Taoyuan Airport (open 24 hours). Taiwan Bank’s Easy Purchase rate advantage is about 0.5%, often fee-free, with excellent reputation.

Foreign currency ATMs are ideal for busy professionals. Use chip-enabled bank cards to withdraw JPY at ATMs, operating 24/7. Only NT$5 cross-bank fee per withdrawal from your NT$ account. The downside: about 200 machines nationwide, less dense than convenience stores, and cash may run out during peak times (especially at airports). Daily withdrawal limit is around NT$100,000-150,000 equivalent (based on the new 2025 regulations).

Don’t just sit on your yen after exchanging

Many make the mistake of leaving their yen idle after exchanging, losing on interest rate spread.

JPY time deposits are the most stable choice, starting from NT$10,000 with annual rates of 1.5-1.8%, suitable for medium-term holding. Open an account at E.Sun Bank or Taiwan Bank to deposit online.

JPY ETFs (such as 00675U, 00703) offer growth potential. Buy fractional shares via brokerage apps to track the JPY index. Management fees are about 0.4% annually, diversifying risk while participating in currency appreciation.

JPY insurance policies from Cathay and Fubon offer guaranteed interest rates of 2-3%, suitable for medium-term capital allocation.

Forex swing trading targets high-return investors. Trade USD/JPY or EUR/JPY directly, with the advantage of long and short positions, 24/7 trading, and low entry barriers. However, risks are higher, so small investments are recommended for testing.

The BOJ’s rate hikes are bullish for the yen, but arbitrage unwinding and geopolitical conflicts could shift the trend, so dual-direction fluctuations remain something to watch for.

Quick Q&A

How many JPY can NT$10,000 buy? Using Taiwan Bank’s cash sell rate of 4.85, about 48,500 JPY. Using spot sell rate of 4.87, about 48,700 JPY. The difference is roughly 200 JPY (about NT$40).

What to bring for in-person exchange? Bring your ID + passport (foreigners: passport + residence permit). Under 20 requires a parent’s accompaniment. For amounts over NT$100,000, you may need to declare the source of funds.

Where do banks differ in exchange rates? Taiwan Bank has no fees but mid-range rates; E.Sun Bank offers better rates but charges NT$100 fee; Fubon Bank has the worst rates but provides foreign currency ATM services. Choose based on your needs.

Summary

How much yen do you need for a trip to Japan? There’s no standard answer; it depends on your purpose, timing, and amount. But the core principles are twofold: exchange in stages to average costs, and immediately allocate after exchange into fixed deposits or ETFs for higher returns.

For beginners, the most recommended approach is “Taiwan Bank online exchange + airport pickup” or “foreign currency ATMs,” which are simple and effective. Yen is no longer just a travel pocket money but also an asset allocation tool with hedging functions. Mastering the timing and methods allows you not only to enjoy your trip cost-effectively but also to add a layer of protection during market turbulence.