USD exchange rate is 4.85. Is it a good time to exchange now? 5 tips to master the best exchange timing

The ongoing depreciation pressure on the Taiwan dollar has caused the USD/JPY exchange rate to reach 4.85. When exchanging currencies, it’s no longer just about travel; it has become a new option for small-scale investments.

But the question is: How to exchange currency in the most cost-effective way? Four methods are available—at bank counters, online currency exchange, foreign currency ATMs—and the price differences can exceed 1,500 NT dollars. Let’s break down and calculate the costs clearly.

Why is it worth exchanging for JPY? Travel is just secondary

When it comes to exchanging foreign currency, Taiwanese people prefer JPY. On the surface, it’s because of travel to Japan, but the deeper reasons are more interesting.

Everyday use:

• Japan still primarily uses cash (credit card penetration is only 60%), so shopping in Tokyo, skiing in Hokkaido, and vacations in Okinawa all require cash
• Purchasing from Japanese online shops or auctions is cheaper with direct JPY payments
• Students or working holidaymakers exchange currency in advance to hedge against exchange rate fluctuations

Investment aspect: more critical

JPY is one of the three major safe-haven currencies globally (along with USD and Swiss Francs), for a simple reason: Japan’s economy is stable, and debt is manageable. During the Russia-Ukraine conflict in 2022, JPY appreciated by 8% in a week, successfully buffering a 10% decline in the stock market. For Taiwanese investors, exchanging for JPY is not just for leisure but also for hedging Taiwan stock market volatility.

Another aspect is that the Bank of Japan (BOJ) maintains ultra-low interest rates (only 0.5%) for a long time, making JPY a “funding currency.” Many investors borrow at low-interest JPY, arbitrage with higher-yield USD (interest rate differential of 4.0%), and when risks rise, close positions to buy back JPY—that’s a classic forex market strategy.

Is now a good time to exchange for JPY? Look at this data

As of December 10, 2025, the NT dollar to JPY rate is about 4.85.

What does this rate mean? Compared to 4.46 at the start of the year, JPY has appreciated by about 8.7%. In other words, the exchange gain from investing in JPY is quite significant—especially under NT dollar depreciation pressure.

In the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly due to travel recovery and hedging needs. This is not a coincidence but a market signal: JPY is worth paying attention to.

But is this the lowest point? Not necessarily.

According to the latest data, with the US entering a rate-cut cycle, JPY will be supported. Meanwhile, the BOJ is on the verge of raising interest rates: Governor Ueda recently made hawkish comments, pushing market expectations to 80%, with a 0.25 bps hike to 0.75% expected at the December 19 meeting (a 30-year high).

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest it will be below 150. For investors, gradually entering positions is the safest strategy to avoid buying at the high point.

Four major ways to exchange JPY, with cost differences exceeding 1,500 NT dollars

The cost difference in exchanging JPY is much larger than you might think. Calculated on 50,000 NT dollars:

Method 1: Bank counter cash exchange (most traditional, most expensive)

Carry NT cash to a bank or airport counter to exchange for JPY cash. Simple to operate, but uses the “cash selling rate” (about 1-2% worse than the spot rate), resulting in higher costs.

As of December 10, 2025, reference cash selling rates at various banks:

Cost for exchanging 50,000 NT$: loss of 1,500-2,000 NT$

Advantages: Safe, reliable, full denominations, assistance from staff
Disadvantages: Exchange rate spread, limited business hours (9:00-15:30), possible additional fees
Suitable for: Urgent needs, unfamiliar with online operations

Method 2: Online exchange, pick up at counter (balanced approach)

Use online banking or app to convert NT$ to JPY at the “spot sell rate” (about 1% better than cash selling rate), deposit into a foreign currency account. If cash is needed, withdraw at counter or ATM, with additional exchange spread fee (starting at 100 NT$).

This method is suitable for observing exchange rate trends and entering gradually when the rate is low (e.g., NT$ to JPY below 4.80).

Cost for exchanging 50,000 NT$: loss of 500-1,000 NT$

Advantages: 24-hour operation, averaging costs over time, better rates
Disadvantages: Need to open a foreign currency account first, withdrawal fees for cash
Suitable for: Experienced forex users, considering JPY fixed deposits (annual interest 1.5-1.8%)

Method 3: Online currency exchange, airport pickup (most clever)

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s official website. After completion, bring ID and transaction notification to pick up at the counter. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online exchange fee is waived (pay only 10 NT$ via TaiwanPay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours). Book in advance before departure to save time.

Cost for exchanging 50,000 NT$: loss of 300-800 NT$

Advantages: Better rates, often no service fee, can choose airport pickup
Disadvantages: Need to book in advance (1-3 days), pickup during bank hours only
Suitable for: Planned travelers who want to pick up cash directly at the airport

Method 4: Foreign currency ATM withdrawal (most flexible)

Use a chip-enabled financial card to withdraw JPY cash at foreign currency ATMs. Supports 24-hour operation and interbank withdrawals (from NT$ account, only 5 NT$ fee).

SinoPac Bank’s foreign currency ATM allows withdrawal from NT$ accounts, with a daily limit of 150,000 NT$, no exchange fee. However, ATM locations are limited (~200 nationwide), and cash may run out during peak times, so it’s not suitable for last-minute needs.

Cost for exchanging 50,000 NT$: loss of 800-1,200 NT$

Advantages: Instant withdrawal, high flexibility, low interbank fee
Disadvantages: Limited locations and denominations (fixed at 1,000/5,000/10,000 JPY), possible cash shortages during peak hours
Suitable for: Those without time for counter exchange or needing urgent cash

How should small investors exchange? The best is a mixed strategy

If your budget is only 50,000-200,000 NT$, it’s recommended to use a “online exchange + ATM withdrawal” mixed approach:

• Main amount via online exchange: Use about 50% of your budget to exchange at the airport for better rates and lower fees
• Supplement with ATM withdrawal: Use the remaining part for flexible cash needs

This way, you avoid the rate spread at counters and retain flexibility, keeping costs within 500-1,000 NT$.

After exchanging JPY, what’s next? Don’t let your money sit idle

Getting JPY cash is just the first step; the next is to maximize returns.

JPY fixed deposit (interest rate 1.5-1.8%): Most stable, open accounts at E.SUN or Taiwan Bank, online deposit, starting from 10,000 JPY

JPY insurance policies: Medium-term holding, Cathay or Fubon savings insurance, guaranteed interest rate 2-3%

JPY ETFs (00675U, 00703): Track JPY index, can buy fractional shares via broker apps, suitable for dollar-cost averaging

Forex trading USD/JPY, EUR/JPY: Direct trading of exchange rate fluctuations, both long and short, 24-hour trading, small capital required, suitable for short-term volatility

While JPY is a safe-haven, it also has two-way volatility. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could push it down. Beginners should start with fixed deposits and gradually move into ETFs or forex trading.

Quick answers to common questions

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

Cash exchange rate is the rate banks offer for physical cash transactions, settled immediately, but usually 1-2% worse than the spot rate. The spot rate is the foreign exchange market rate for settlement within two business days (T+2), mainly used for electronic transfers, and is closer to international market prices.

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

Using Taiwan Bank’s December 10, 2025, cash selling rate of about 4.85, 10,000 NT$ can get approximately 48,500 JPY. Using the spot sell rate (about 4.87), it’s roughly 48,700 JPY, a difference of about 200 JPY (equivalent to NT$40).

Q: What ID do I need for counter exchange?

ID card + passport. If pre-booked online, also bring transaction notification. For large amounts (over 100,000 NT$), may need to declare source of funds. Under 20 years old, must be accompanied by a parent.

Q: What’s the daily limit for foreign currency ATM withdrawal?

From 2025, limits at banks have generally decreased to 100,000-150,000 NT$ per day. Our bank cards typically have a single transaction limit of about 50,000-120,000 NT$, depending on the issuing bank. For multiple withdrawals, consider spreading out or using your own bank card to avoid cross-bank fees.

Summary: Timing is key, and staggered entry is best

JPY is no longer just for travel “pocket money”; it now also functions as an asset with hedging and small investment value.

Whether you’re preparing for a trip to Japan next year or hedging against NT dollar depreciation by moving into JPY, following the two principles of “gradual exchange + not leaving money idle” can minimize costs and maximize gains.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer JPY into fixed deposits, ETFs, or even try forex trading based on your needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market fluctuations.