2025 Yen Investment Guide: TWD and JPY Exchange Rate Trends and Currency Exchange Strategies

The Best Time to Exchange Yen Now

The exchange rate between the New Taiwan Dollar (NTD) and the Japanese Yen (JPY) is currently hovering around 4.85, up 8.7% from the beginning of the year’s 4.46. This figure is quite attractive for Taiwanese investors looking to allocate assets for hedging. According to the latest observations, the demand for currency exchange in the second half of the year has increased by over 25%, driven by the recovery in tourism and the dual support of asset allocation needs.

The Governor of the Bank of Japan, Ueda Kazuo, recently signaled a hawkish stance. The market expects the December 19 meeting to raise interest rates by 0.25 bps to 0.75% (a 30-year high), with Japanese bond yields surging to a 17-year high of 1.93%. The USD/JPY has fallen from the early-year high of 160 to around 154.58, creating opportunities for subsequent swing trading.

NTD and JPY Exchange Rate: Batch or One-Time Exchange?

Many people face the core dilemma: Is now the best time to exchange Yen? The answer is: Batch exchange is better than a one-time full exchange.

Although the Yen is one of the three major safe-haven currencies (alongside USD and CHF), it still faces short-term risks of arbitrage unwinding, with estimated volatility of 2-5%. Given the current US interest rate cut cycle, the Yen may find support, but in the medium to long term, USD/JPY is expected to fluctuate below 150.

Advantages of a batch strategy:

• Averaging entry costs and avoiding exchange rate risk at a single point
• Flexibly responding to market fluctuations, adding more at lows (NTD/JPY below 4.80)
• Coordinating with regular currency exchange reservations to disperse psychological and operational pressures

True Cost Comparison of Four Major Currency Exchange Channels

Many mistakenly believe bank currency exchange is similar across providers, but the cost difference for a single NT$50,000 exchange can be as high as NT$1,700. Based on the latest data as of December 2025, here is a summary.

First: On-site cash transaction (highest cost)

Carry NT$ cash to a bank branch or airport counter to exchange for Yen cash. This method uses the “cash selling rate,” usually 1-2% worse than the spot rate, plus possible handling fees, making the overall cost higher. For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/JPY (or 4.85 JPY/NT$), with some banks charging NT$100-200 handling fee.

Use case: Urgent airport needs, small amounts, unfamiliar with online procedures

Estimated loss: NT$50,000 exchange costs about NT$1,500-2,000

Second: Online foreign currency account + ATM withdrawal (most flexible)

Transfer NT$ into a foreign currency account via banking app or online banking (using the spot selling rate, about 1% discount). When cash is needed, withdraw from foreign currency ATMs. E.SUN Bank’s foreign currency ATM limit is NT$150,000 per day, with a cross-bank fee of NT$5. This method suits those with forex investment experience, planning to invest in Yen deposits or ETFs long-term, or who prefer not to visit the bank in person.

Use case: Experienced forex investors, planning regular Yen deposits or ETFs, no time for in-person visits

Estimated loss: NT$50,000 exchange costs about NT$500-1,000

Third: Online currency exchange + airport pickup (most recommended)

No need to pre-open a foreign currency account. Book directly on the bank’s website, fill in the amount, pick-up branch, and date. After completion, bring ID and notification to pick up in person. Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (only NT$10 with TaiwanPay), with a 0.5% favorable rate. Key advantage: can reserve at any of the 14 Taoyuan Airport locations (including 2 open 24 hours).

Use case: Well-planned trips, wanting cash directly at the airport, travelers exchanging NT$50,000-200,000

Estimated loss: NT$50,000 exchange costs about NT$300-800

Fourth: Overseas ATM withdrawal (investment-grade)

After arriving in Japan, use a Taiwan bank debit card to withdraw Yen cash locally. Note that Japan’s ATM withdrawal rules will change by the end of 2025, requiring an international card (Mastercard/Cirrus). Single withdrawal fees are about NT$80-150. Suitable for those staying long in Japan and only realizing on-site that they need cash.

Use case: Temporary needs, avoiding pre-arranged cash

Estimated loss: NT$50,000 exchange costs about NT$800-1,200

Latest NTD and JPY Exchange Rates from Banks (2025/12/10)

(Source: Official bank websites, updated 2025/12/10)

How to Make Your Yen Work for You After Exchange

Many people leave their Yen idle after exchanging, missing out on potential additional income. Here are four advanced options suitable for small-scale beginners.

Yen fixed deposit: Deposit into E.SUN or Taiwan Bank foreign currency accounts, starting from 10,000 Yen, with annual interest rates of 1.5-1.8%, risk-free.

Yen insurance policies: Savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%, held medium-term (3-5 years), suitable for conservative investors.

Yen ETFs (00675U, 00703): Yuanta 00675U tracks Yen index, management fee 0.4%, suitable for regular investment, can buy fractional shares via broker apps.

Forex swing trading: Trade USD/JPY or EUR/JPY directly on forex platforms, 24-hour trading, two-way operations, low entry barrier, suitable for traders sensitive to exchange rate fluctuations.

Common Questions About Currency Exchange

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

Cash rate (Cash Rate) applies to physical cash buying and selling, with the advantage of immediate cash receipt but a 1-2% worse rate. Spot rate (Spot Rate) is used for electronic transfers, settled T+2, closer to international market rates, with about 0.5-1% discount.

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

Based on the December 10, 2025, cash selling rate of 4.85, NT$10,000 exchanges for about 48,500 Yen. Using the spot rate of 4.87, it’s approximately 48,700 Yen, a difference of about 200 Yen.

Q: What should I bring for on-site currency exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. Under 20 needs a parent present. For large amounts (over NT$100,000), a source of funds declaration may be required.

Q: What are the latest rules for foreign currency ATM withdrawals?

From October 2025, most banks have reduced their daily limit to NT$100,000-150,000 equivalent, with digital accounts even lower at NT$100,000. It’s recommended to split withdrawals and use your bank’s card to avoid cross-bank fees of NT$5.

Final Advice

Yen is no longer just for travel; it’s an asset allocation tool with hedging value and investment opportunities. The NT$ and JPY exchange rate still has room to rise, especially under NT$ depreciation pressure. Appropriately allocating Yen can effectively hedge against Taiwan stock market volatility.

Golden rule of currency exchange: Batch entry + don’t leave the position idle after exchange. Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then, based on needs, move into deposits, ETFs, or swing trading. This approach makes traveling more cost-effective and adds a layer of global market protection.