JPY exchange rate is 4.85. Among the four airport exchange methods, which one is the most cost-effective?

As of December 10, 2025, the NT dollar has soared to 4.85 against the Japanese Yen, making travel abroad and Yen investments very popular. However, many people don’t realize that there are numerous ways to exchange for Yen, and just the exchange rate difference can cost you several thousand NT dollars more. Today, we’ll break down the four most cost-effective methods to exchange for Yen.

Why is it worth exchanging for Yen? It’s not just about travel

Many think that exchanging for Yen is only for visiting Japan. In fact, Yen plays a crucial role from daily needs to financial investments.

Daily Application Scenarios

Travelers to Japan know that while more stores in Tokyo, Osaka, Hokkaido, and Okinawa support card payments, cash remains the main method (credit card penetration is only 60%). Besides travel, buying Japanese cosmetics, clothing, and anime merchandise often requires Yen cash. For those planning to study or work in Japan, exchanging Yen in advance can avoid sudden exchange rate fluctuations.

Core Value of Financial Hedging

The Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), trusted long-term due to Japan’s stable economy and healthy government debt levels. During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a week, successfully buffering stock market declines. For Taiwanese investors, holding Yen isn’t just for fun; it also helps hedge against Taiwan stock risks.

Another perspective is arbitrage trading. The Bank of Japan maintains ultra-low interest rates (only 0.5%), making Yen a “funding currency.” Many investors borrow Yen at low interest and invest in higher-yield USD (USD-JPY spread reaching 4.0%), then close positions when risks rise to buy back Yen for profit.

Practical comparison of 4 Yen exchange methods

Just exchanging at a bank counter can differ by at least 1-2%. Below are the four most mainstream methods, including the best strategies at airports.

Method 1: Bank Counter Direct Exchange (Traditional but Most Expensive)

This is the most straightforward approach—bring NT cash to a bank or airport counter to buy Yen cash. Simple to operate, you get immediate cash, but at the “cash selling rate,” which is about 1-2% worse than the spot rate, making it the most costly.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 TWD/JPY (1 TWD = 4.85 Yen). Some banks also charge fixed handling fees.

Advantages: Safe, reliable, denominations available (1,000, 5,000, 10,000 Yen), staff assistance on-site.
Disadvantages: Rate difference, limited business hours (9:00-15:30), possible extra fees.
Best for: Those unfamiliar with online methods or needing small amounts urgently.

Bank rates and fees on December 10, 2025:

Method 2: Online Exchange & Pick Up at Airport (Best Pre-Travel Choice)

This is a secret weapon for many savvy travelers. Fill in the amount, branch, and date on the bank’s website, complete payment, then bring ID and transaction notice to pick up at the counter. Taiwan Bank’s “Easy Purchase” online exchange service has no handling fee (pay with Taiwan Pay for just 10 NT), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank locations, including 2 open 24 hours, allowing quick pickup before departure or after returning.

Advantages: Better rates, often no fees, airport pickup option, saves queue time.
Disadvantages: Need to book 1-3 days in advance, pickup only during business hours, branch cannot change pickup location last minute.
Best for: Planned travelers who want Yen directly at the airport.

Method 3: Foreign Currency ATM Withdrawal (Emergency Solution)

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen 24/7, with only NT 5 fee for interbank withdrawals. E.SUN Bank’s foreign currency ATMs allow withdrawal from NT accounts, with a daily limit of NT 150,000 and no currency exchange fee.

Note: There are about 200 such ATMs nationwide, with fixed denominations of 1,000, 5,000, 10,000 Yen. During peak times (airports, holidays), cash may run out.

Advantages: Instant withdrawal, 24/7 access, low interbank fee, flexible.
Disadvantages: Limited locations, fixed denominations, possible cash shortages during busy periods, limit per day.
Best for: Those who need Yen urgently without visiting a bank.

Method 4: Online Forex Conversion to Foreign Currency Account (Investor Favorite)

Use online banking or app to convert NT to Yen and deposit into a foreign currency account, using “spot sell rate” (about 1% better than cash sell). If cash is needed, go to branch or use ATM, but will incur exchange spread (around NT 100+).

Many banks like E.SUN support this, suitable for investors who want to buy in stages and average costs.

Advantages: 24/7 operation, flexible purchase, better rates, suitable for long-term holding.
Disadvantages: Need to open a foreign currency account first, withdrawal fees, interbank transfer costs (~NT 5-100).
Best for: Investors experienced in forex, planning regular Yen allocations.

Cost Comparison of 4 Methods

Based on exchanging NT 50,000:

Is it really cost-effective to exchange Yen now?

On December 10, 2025, the rate of 4.85 has appreciated 8.7% from the start of the year at 4.46. Since the beginning of the year, Yen exchange gains are significant, especially under NT dollar depreciation pressure. In the second half, Taiwan’s forex demand increased by 25%, mainly from travel recovery and hedging needs.

But the key question: Is now the best time? The answer is conditional.

The Yen exchange rate is currently in a volatile range. The US entering a rate cut cycle favors Yen. Meanwhile, the Bank of Japan has signaled a rate hike: Governor Ueda recently made hawkish comments, with an 80% market expectation of a 0.25 basis point increase to 0.75% at the December 19 meeting (a 30-year high). Japanese 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 around 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150. For investment purposes, Yen as a major safe-haven currency is suitable for hedging Taiwan stocks, but short-term risks include arbitrage closing, with fluctuations of 2-5%.

Strategy suggestion: Buy in stages, avoid all at once.

What to do after exchanging Yen? Don’t let your money sit idle

If you’ve already exchanged Yen, don’t let it stay idle without interest. Here are four options suitable for small investors:

Yen Fixed Deposit: Stable returns, open an FX account at E.SUN or Taiwan Bank, deposit online, minimum NT 10,000, annual interest 1.5-1.8%.

Yen Insurance Policy: Medium-term holding, savings insurance from Cathay or Fubon Life, guaranteed interest rate 2-3%.

Yen ETFs: Growth-oriented, e.g., Yuanta 00675U tracking Yen index, can buy fractional shares via broker app.

Forex Swing Trading: Trade USD/JPY or EUR/JPY directly on platforms like Mitrade, supporting zero commission, low spreads, 24-hour trading, suitable for capturing rate swings.

While Yen has hedging features, it also faces two-way volatility. BOJ rate hikes are positive, but global arbitrage closing or geopolitical conflicts (Taiwan Strait, Middle East) may depress Yen. For investment, Yen ETFs (annual fee 0.4%) can diversify risk.

Common Questions About Yen Exchange

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

Cash rate is the rate banks offer for physical cash (notes/coins), paid on the spot, but usually 1-2% worse than the spot rate, plus higher fees. Spot rate is the foreign exchange market rate for settlement within two business days, used for electronic transfers and interbank settlements, more favorable and close to international market prices.

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

Formula: Yen amount = NT amount × current rate (TWD/JPY). Using Taiwan Bank’s December 10, 2025, cash selling rate 0.2060, NT 10,000 ≈ 48,500 Yen. With spot selling rate plus about 0.0027, roughly 48,700 Yen, difference about 200 Yen (~NT 40).

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

Taiwanese: ID card + passport. Foreigners: passport + residence permit. Company exchange: business registration. For online booking, also bring transaction notice. Under 20 years old: parental consent. Over NT 100,000 may require source of funds declaration.

Q: Are there limits for foreign currency ATM withdrawals?

Post-October 2025, many banks adjusted limits. CTBC: NT 120,000/day equivalent; Taishin: NT 150,000/day; E.SUN: NT 50,000/day but max 50 notes. Use your own bank card to avoid interbank fee (NT 5 per transaction). Plan ahead during busy times.

Summary: How smart people exchange Yen

Yen is no longer just for travel “pocket money,” but also an asset with hedging and investment value. Whether traveling next year or hedging via Yen as NT depreciates, following the principles of “staged exchange + not leaving money idle” can minimize costs and maximize gains.

Beginners should start with the simplest methods: “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or forex swing trading as needed. This way, you not only enjoy cost-effective travel but also add a layer of protection during market volatility. Airport exchange is really about planning ahead, choosing the right method, and buying in stages—three steps to easily get it done.