Yen exchange cost comparison: Latest 2025 rates based on four major channels' real-world testing

By the end of 2025, the New Taiwan Dollar (NTD) to Japanese Yen (JPY) exchange rate hovered around 4.85, representing a cumulative appreciation of nearly 9% from 4.46 at the beginning of the year. Amidst the continuous pressure on the Taiwan dollar, demand for Yen investments and international travel has simultaneously increased, but the costs across different exchange channels can vary by more than 1,500 yuan. Based on the latest rates, we have summarized four mainstream methods for Taiwanese people to exchange JPY, helping you find the most cost-effective option.

Why Exchange for Yen? Not Just for Traveling Abroad

When it comes to foreign currency exchange, Yen has always been the first choice for Taiwanese. But the reasons behind this go far beyond simply “loving to visit Japan.”

Everyday Consumption

During trips to Japan, cash remains the primary payment method (credit card penetration is only 60%). From shopping in Tokyo to skiing in Hokkaido and vacationing in Okinawa, carrying cash is necessary. Additionally, players purchasing Japanese cosmetics, clothing, and anime merchandise often pay directly in Yen; students planning to study abroad or work part-time need to exchange currency in advance to hedge against exchange rate fluctuations.

Financial Asset Allocation Perspective

The Yen is one of the three major safe-haven currencies globally (alongside the US dollar and Swiss franc), due to Japan’s stable economy and sound debt structure. When market volatility intensifies—such as during the Russia-Ukraine conflict in 2022, when the Yen appreciated by 8% in a week and successfully buffered a 10% decline in the stock market—large amounts of safe-haven funds flowed into Yen assets. For Taiwanese investors, exchanging for Yen serves both to diversify risk and hedge against Taiwan stock market fluctuations.

The Bank of Japan has maintained an ultra-low interest rate policy (only 0.5%), making Yen a “financing currency” for arbitrage trading. Investors borrow Yen at low interest, convert to higher-yield USD (with a USD/JPY interest differential of 4.0%), and profit from closing the position when risk increases by buying back Yen.

Four Main Channels for Exchanging Yen in Taiwan

Many believe that exchanging Yen is as simple as walking into a bank, but in reality, the exchange rate differences and handling fees across channels can cost you the price of several drinks. Here are the four latest options.

Option 1: In-Person Cash Exchange—Traditional but Most Expensive

Carry NT$ cash directly to a bank branch or airport counter to exchange for Yen cash. This is the most straightforward method, but it uses the “cash selling rate” (1-2% worse than the spot rate), resulting in the highest overall cost.

For example, Taiwan Bank’s rate on December 10, 2025, was 0.2060 NT$/JPY (about 4.85 Yen per NT$). Some banks also charge an additional 100-200 NT$ handling fee.

Advantages: Safe transaction, denominations available (1,000/5,000/10,000 Yen), staff guidance on-site
Disadvantages: Less favorable rates, limited operating hours (weekday 9:00-15:30), possible extra fees
Suitable for: Small, urgent needs, airport emergencies

Bank Cash Selling Rates and Fees (as of 2025/12/10)

Option 2: Online Currency Exchange + In-Person Withdrawal—A Middle Ground

Use online banking or apps to convert NT$ to Yen at the “spot selling rate” (about 1% better than cash selling rate), deposit into a foreign currency account. When cash is needed, withdraw at a branch or foreign currency ATM, but this incurs a conversion handling fee (starting around 100 NT$).

For example, after currency exchange via E.SUN Bank’s app, withdrawing Yen cash involves fees based on the difference between spot and cash rates. This method suits investors observing exchange rate trends and accumulating Yen gradually at lower costs.

Advantages: 24/7 operation, cost averaging, relatively favorable rates
Disadvantages: Need to open a foreign currency account, withdrawal fees (5-100 NT$ cross-bank)
Suitable for: Experienced forex users, long-term holdings, Yen fixed deposits

Option 3: Online Currency Purchase + Airport Pickup—Best Pre-Travel Option

No need to pre-open a foreign currency account. Simply select currency, amount, pickup branch, and date on the bank’s website, then transfer funds. Upon arrival, present ID and transaction notice to pick up the Yen in person. Taiwan Bank and Mega Bank offer this service, with options to pick up at airports, making it very convenient for travelers.

Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (pay only 10 NT$ via Taiwan Pay), with a rate advantage of about 0.5%. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), greatly reducing time costs.

Advantages: Better rates, often no handling fees, airport pickup available, ideal for pre-travel planning
Disadvantages: Need to book 1-3 days in advance, pickup during business hours only, branches cannot modify orders
Suitable for: Planned trips, pre-departure preparations

Option 4: Foreign Currency ATM Withdrawal—Instant and Flexible but Limited

Use chip-enabled bank cards at foreign currency ATMs to withdraw Yen cash 24/7, supporting cross-bank transactions (NT$5 fee for Taiwan dollar accounts). However, ATM locations are limited (~200 nationwide), and currency options are mainly mainstream currencies.

SinoPac Bank’s foreign currency ATMs allow Yen withdrawals from NT$ accounts with a single transaction limit of NT$150,000 and no exchange fee. Note that Japan’s ATM withdrawal services will switch to international cards (Mastercard/Cirrus) by the end of 2025. Also, during peak times (especially airports), cash may run out, so not suitable for urgent needs.

Advantages: Real-time withdrawal, high flexibility, low cross-bank fees
Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 Yen), cash shortages at peak times
Suitable for: Last-minute cash needs, no time for in-branch exchange

Cost and Benefit Comparison of the Four Methods

For exchanging NT$50,000, estimated costs are as follows:

Recommended Strategy: For budgets of NT$50,000–NT$200,000, the most cost-effective combination is “Online currency purchase + airport pickup” or “Online exchange + multiple ATM withdrawals.”

Is It a Good Time to Exchange Yen? Market Outlook

Exchange Rate Trends

On December 10, 2025, the NT$ to Yen rate was about 4.85. Compared to 4.46 at the start of the year, this is an appreciation of 8.7%, making it attractive for investors. Data shows that in the second half of 2025, Taiwan’s currency exchange demand increased by 25%, driven mainly by travel recovery and safe-haven asset allocation.

Central Bank Policy Background

Japan’s central bank governor Ueda Kazuo recently made hawkish comments, boosting market expectations of rate hikes, with an 80% probability. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 30-year high), with Japanese government bond yields reaching 1.93%, the highest in 17 years. USD/JPY has fallen from a high of 160 at the start of the year to 154.58; short-term fluctuations around 155 are possible, but medium to long-term forecasts suggest below 150.

Investor Advice

Exchanging Yen now is advantageous, but a phased approach is recommended. Yen as a safe-haven asset is suitable for hedging Taiwan stock market volatility, but short-term risks include potential 2-5% fluctuations from arbitrage unwinding. It’s advisable to buy in stages and closely monitor Fed and BOJ policy developments.

Post-Exchange Asset Growth Paths

Once you have Yen, letting it sit idle without interest is a missed opportunity. Here are four beginner-friendly investment options:

1. Yen Fixed Deposit (Conservative)
Open a foreign currency account with E.SUN or Taiwan Bank, deposit Yen online. Minimum 10,000 Yen, annual interest rate 1.5-1.8%, safe and stable.

2. Yen Insurance Policy (Mid-term Hold)
Buy Yen savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%, combining protection and returns.

3. Yen ETFs (Growth)
For example, Yuanta 00675U tracks Yen indices, purchasable in fractional shares via brokerage apps, suitable for periodic investment. Management fee: 0.4% annually.

4. Yen Forex Trading (Swing Trading)
Trade USD/JPY or EUR/JPY directly on forex platforms, suitable for traders familiar with market swings. Features include two-way trading, 24-hour operation, and small capital requirements.

While Yen has safe-haven attributes, its two-way volatility risk should not be ignored. Global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could weaken Yen. For investment, Yen ETFs diversify risk; for swing trading, USD/JPY and EUR/JPY are classic choices.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate applies to physical cash transactions, offering immediate delivery but usually 1-2% worse than the spot rate, with higher fees. Spot rate is used for electronic transfers within two business days (T+2), such as interbank transfers or foreign currency accounts, and is closer to international market prices.

Q: How much Yen can I get with NT$10,000?
Based on Taiwan Bank’s rate on December 10, 2025, with a cash selling rate of about 4.85, NT$10,000 can exchange for approximately 48,500 Yen. Using the spot rate (about 4.87), it’s roughly 48,700 Yen, a difference of about 200 Yen (roughly NT$40).

Q: What documents are needed for in-branch exchange?
Taiwan residents need ID card + passport; foreigners need passport + residence permit; companies need business registration. If booked online, bring transaction notice. Minors under 20 require parental consent; large amounts (>NT$100,000) may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?
Starting October 2025, banks have adjusted limits. China Trust: NT$120,000 per transaction/day; Taishin Bank: NT$150,000 per transaction/day; E.SUN Bank: NT$50,000 per transaction (50 banknotes), NT$150,000 per day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Yen Has Become an Essential Asset Allocation Option

Yen has long transcended its role as “pocket money for travel” and now functions as a safe-haven and investment asset. Whether for next year’s trip to Japan or hedging against the NT$ depreciation, mastering “phased currency exchange + post-exchange asset utilization” can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank’s online exchange + airport pickup” or “foreign currency ATM withdrawals in stages,” then transfer Yen into fixed deposits, ETFs, or forex swing trades based on actual needs. This approach makes travel cheaper and provides an extra layer of protection amid global market fluctuations.