Japanese Yen Bank Exchange Rate: 4 Types of Conversion Methods Tested and Compared — Must Read Before Departure

NTD to JPY reaches 4.85! Since the beginning of the year, it has appreciated by 8.7%, and the demand for travel to Japan and JPY allocations is warming up. But is going to the bank really the only way to exchange yen? Just choosing the wrong channel could cost an extra 2,000 NTD.

We tested the four most common currency exchange options in Taiwan, using real bank rates to show you which is the most cost-effective.

Four Bank JPY Exchange Rate Options, Cost Differences Are Surprisingly Large

Different exchange methods result in significant differences in rates and fees. For example, with 50,000 NTD:

Counter cash exchange: Loss of 1,500-2,000 NTD (cash rate difference + fees)

Online exchange + foreign currency ATM: Loss of 800-1,200 NTD (real-time withdrawal, lowest cross-bank fees)

Online settlement + airport pickup: Loss of 300-800 NTD (reservation system, preferential rates)

Bank foreign currency ATM: Loss of 500-1,000 NTD (24-hour flexibility, limited locations)

In simple terms: The same 50,000 NTD, choosing the wrong channel can cost up to 1,200 NTD more.

Option 1: Counter Cash Exchange—Most Traditional but Most Expensive

Bring cash in NTD directly to the bank or airport counter to get yen notes on the spot. The advantage is simplicity and full denominations (1,000/5,000/10,000 yen).

The downside is using the “cash selling rate,” which is 1-2% worse than the spot rate. For example, Taiwan Bank’s rate on December 10 was about 0.2060 NTD/JPY (equivalent to 4.85 JPY per 1 NTD). Some banks also charge an additional 100-200 NTD fee.

Suitable for: Urgent needs, small amounts (under 10,000-20,000 NTD), or those unfamiliar with online operations.

E.SUN Bank, Cathay United Bank charge extra fees; Taiwan Bank and Mega International Bank are free. These 100-200 NTD may seem small, but for 50,000 NTD exchanged, it increases costs by 20-40%.

Option 2: Online Exchange + Counter or ATM Withdrawal—Investment-Oriented Choice

Use bank app or online banking to convert NTD to JPY at the “spot sell rate” and deposit into a foreign currency account. The rate is about 1% better than cash selling rate. To withdraw cash later, you pay a fee starting from 100 NTD.

Advantages include batch operations—buying at low points (e.g., when NTD/JPY is below 4.80) to lower average costs. Disadvantages are the need to open a foreign currency account first, and withdrawal fees.

Suitable for: Those experienced with forex, wanting to buy in installments, planning long-term holdings or investing in JPY deposits.

Currently, JPY deposits offer annual interest rates of 1.5-1.8%, much higher than NTD deposits. Buying in parts also helps avoid risks from rapid exchange rate surges.

Option 3: Online Settlement + Airport Pickup—Most Convenient for Travel

No need for a foreign currency account. Fill in amount, currency, reservation branch, and date on the bank’s website. After remittance, pick up with ID + transaction notice at the counter. Taiwan Bank’s “Easy Purchase” service has no fee (pay with Taiwan Pay for only 10 NTD), and offers about 0.5% rate advantage.

Key feature: reservation for airport branch pickup. Taoyuan Airport has 14 Taiwan Bank locations, 2 of which are 24-hour. Exchange online the day before departure, then pick up early at the airport—seamless.

Suitable for: Planned travelers, those wanting to pick up cash at the airport, moderate sensitivity to exchange rates.

The downside is needing to book 1-3 days in advance, and pickup times are limited by bank hours. Branch changes are not possible on short notice. But for most travelers, this balances cost and convenience best.

Option 4: Foreign Currency ATM Withdrawal—Best for Urgent Nighttime Needs

Use a chip-enabled bank card at 24-hour foreign currency ATMs to withdraw yen cash. Supports cross-bank transactions, with only 5 NTD cross-bank fee per withdrawal from a NTD account. Fubon Bank’s foreign currency ATM limit is 150,000 NTD equivalent per day, with no exchange fee.

About 200 foreign currency ATMs nationwide, with fixed denominations (1,000/5,000/10,000 yen), suitable for emergency needs. The downside is limited locations and cash shortages during peak times (airports or holidays).

Suitable for: No time to visit banks, urgent withdrawals, avoiding banking hours restrictions.

Note: Starting end of 2025, ATM withdrawals in Japan require international cards (Mastercard/Cirrus). In Taiwan, due to new regulations, many banks have lowered daily limits to 100,000-150,000 NTD. It’s recommended to split withdrawals.

Is it worth exchanging JPY now? Timing tips

NTD/JPY at 4.85, up 8.7% since the start of the year. Compared to 4.46 at the beginning of the year, this yields significant exchange gains. The Bank of Japan’s Governor Ueda Kazuo recently made hawkish comments, boosting rate hike expectations to 80%, with a December 19 meeting expected to raise rates by 0.25 bps to 0.75% (30-year high). USD/JPY has fallen from a high of 160 to around 154.58 now.

Recommendation: buy in installments. The JPY exchange rate is in a volatile zone, possibly returning to 155 in the short term, but medium to long-term forecasts are below 150. For investment, JPY has safe-haven attributes (one of the world’s three major safe currencies), suitable for hedging against Taiwan stock volatility, but arbitrage closing positions may fluctuate 2-5%.

Don’t exchange all at once; staggered entry is smarter.

After exchanging JPY, don’t let your money sit idle

Once you have JPY, four options:

JPY deposits—annual interest 1.5-1.8%, minimum 10,000 yen, available at E.SUN and Taiwan Bank, suitable for capital preservation.

JPY insurance policies—Cathay Life/Fubon Life savings insurance, guaranteed interest 2-3%, medium-term locked-in returns.

JPY ETFs (00675U, 00703)—Yuanta 00675U tracks JPY index, can be traded as fractional shares, suitable for dollar-cost averaging. Management fee 0.4% annually.

Forex swing trading—directly trade USD/JPY or EUR/JPY, long and short, 24-hour trading, but requires understanding of forex.

The BOJ rate hike is positive for JPY, but global arbitrage closing or geopolitical conflicts may suppress it. Choosing JPY ETFs to diversify risk is safer.

Common Q&A on JPY bank exchange rates

Q: How much is the difference between cash rate and spot rate?

Cash rate (notes/coins) is usually 1-2% worse than spot rate (T+2 settlement). Plus fees, costs are higher. For example, exchanging 50,000 NTD at counter may cost a few hundred NTD more.

Q: How many yen for 10,000 NTD?

Using Taiwan Bank’s December 10 cash selling rate of 4.85, 10,000 NTD can get about 48,500 JPY. Using spot rate (~4.87), about 48,700 JPY—difference of roughly 200 JPY.

Q: What to bring for counter exchange?

ID + passport (or foreign residence permit). If booked online, also bring transaction notice. Under 20 years old needs parent accompaniment; large exchanges (over 100,000 NTD) may require source of funds declaration.

Q: Daily withdrawal limit at foreign currency ATMs?

Post-2025, limits are generally 100,000-150,000 NTD/day. CTBC Bank’s own card: 120,000/day; Taishin Bank: 150,000/day; E.SUN: 150,000/day (including debit). Other banks depend on issuing bank rules, cross-bank fee 5 NTD per transaction. Using your own bank card avoids cross-bank fees.

Summary

JPY is no longer just for travel pocket money; it’s also a hedging and small investment tool. Follow the two principles of “staggered exchange” and “don’t leave money idle” to minimize costs.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then move into deposits or ETFs based on needs. This way, you can enjoy cost-effective travel and add a layer of protection during global market turbulence.

JPY exchange rate fluctuations are normal; timing your entry is smarter than buying all at once.