The Japanese Yen exchange rate hits 4.85! How should I exchange 50,000 TWD to avoid losing money?

By December 2025, the Taiwan dollar has surged to 4.85 against the Japanese yen, up 8.7% from 4.46 at the beginning of the year. Many people are eyeing this appreciation, preparing to exchange yen for a “buy low, sell high” arbitrage game. But here’s the question—which method of currency exchange at the bank counter, online remittance, or foreign currency ATM has the lowest fees? The cost difference can actually exceed 1,000 NT dollars.

Why is the Japanese yen worth paying attention to? Not just for travel money

Don’t think of the yen as just pocket money for travel. In fact, the yen holds a special position in the global financial markets.

Three roles in risk hedging
Japan’s economy is stable, with low debt levels, making the yen one of the three major safe-haven currencies alongside the US dollar and Swiss franc. During regional conflicts or stock market crashes, capital floods into the yen. For example, during the week of the Russia-Ukraine conflict in 2022, the yen appreciated by 8%, while Taiwan’s stock index fell 10%—yen investors successfully hedged their losses with it.

Interest rate hike opportunities are here
Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of an 80% chance of rate hikes. If the December 19 meeting raises rates by 0.25 basis points to 0.75% (a 30-year high), Japanese government bond yields will hit a 17-year high of 1.93%. What does this mean? The yen will continue to strengthen. The USD/JPY has fallen from a high of 160 at the start of the year to 154.58.

Comparing 4 currency exchange methods: cost differences over NT$1,000

Method 1: Bank counter — the most traditional but highest cost

Bring cash NT dollars to the bank or airport to exchange for yen notes. It sounds convenient, but the “cash selling rate” is 1-2% worse than the international spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 NT$/yen. Exchanging NT$50,000 would result in a loss of about NT$1,500-2,000.

Some banks also charge an additional NT$100-200 handling fee, making the cost even less attractive.

Suitable for: Urgent airport needs, elderly who are not familiar with online banking

Method 2: Online remittance + in-branch withdrawal — a balanced choice

Use an app or online banking to convert NT dollars to yen at the “spot selling rate” (about 1% better than cash selling rate), and deposit into a foreign currency account. If you want cash, you can withdraw at the counter or foreign currency ATM, but there will be a currency conversion fee starting from NT$100.

E.SUN, Bank of Taiwan, and Mega International support this service. Online exchange offers flexible timing—24/7 operation, no banking hours restrictions, and allows for phased entry to average costs.

Suitable for: Those with foreign currency account experience, wanting to observe exchange rates for the best entry point

Method 3: Online remittance + airport pickup — a must-know before traveling abroad

This is a favorite among travelers. Fill in currency, amount, pickup branch (usually at the airport), and date on the bank’s website. No need to open a foreign currency account. Online exchange is fully autonomous. Taiwan Bank’s “Easy Purchase” service even waives handling fees, and paying with Taiwan Pay costs only NT$10, with a 0.5% better rate.

Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours. After exchanging, pick up cash directly and board your flight—perfect. Exchanging NT$50,000 results in a loss of only NT$300-800.

Suitable for: Planned travelers who want to withdraw cash directly at the airport

Method 4: Foreign currency ATM — 24/7 emergency plan

Use a chip-enabled financial card to withdraw yen cash at foreign currency ATMs outside banks. For example, CTBC Bank’s daily limit is NT$150,000 equivalent; Taishin Bank’s is NT$150,000; E.SUN Bank’s is NT$150,000. Using a card from another bank may lower the limit. It’s recommended to use your own bank’s card to save on fees. Since 2025, to prevent fraud, many banks’ third-tier digital accounts have reduced the limit to NT$100,000 per day.

The downside: only about 200 ATMs nationwide, and cash may run out during peak times. Don’t wait until the day before departure—risk missing out.

Suitable for: Busy professionals with no time for counter visits, sudden urgent needs

Cost comparison table (actual test with NT$50,000 exchange)

Is it really worth exchanging yen now?

Yes, it’s worthwhile. But don’t exchange all at once.

Currently, the yen exchange rate is quite volatile. Amid the “dual-head” market—US rate cuts and BOJ rate hikes—the yen may fluctuate between 154-155 in the short term, but medium to long-term forecasts suggest it could fall below 150. This means you can stagger your entries to buy yen at the lowest possible cost.

Investment perspective: The yen as a safe-haven asset is suitable for hedging Taiwan stock market volatility. However, arbitrage closing positions may cause short-term fluctuations of 2-5%, so phased entry is crucial.

Taiwan’s foreign exchange demand has grown 25% in the second half of the year, mainly driven by travel recovery and hedging needs. After exchanging, don’t let the money sit idle—consider yen fixed deposits (annual interest rate 1.5-1.8%), yen ETFs (like 00675U tracking the yen index, annual management fee 0.4%), or even trading USD/JPY in waves—long and short, 24/7 trading.

Common Q&A

Q. What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) applies to physical banknotes. Banks usually add a 1-2% spread on the spot rate for cash transactions. Spot rate (Spot Rate) is used for electronic transfers, with no physical delivery, and is more favorable—settled T+2. In simple terms: cash rate is more expensive, spot rate is cheaper.

Q. What documents are needed to exchange foreign currency?
For locals: ID card + passport. For foreigners: passport + residence permit. For corporate exchanges: business registration certificate. If booking online, also bring transaction notification. Minors under 20 need a parent present. Amounts over NT$100,000 may require source of funds declaration.

Q. Are there limits on foreign currency ATM withdrawals?
Yes. For example, CTBC Bank’s limit is NT$120,000 per day; Taishin Bank’s NT$150,000; E.SUN Bank’s NT$150,000. Using other bank cards may lower the limit. After 2025, to prevent fraud, many banks’ third-tier digital accounts have reduced the limit to NT$100,000 per day.

Final advice

The yen is no longer just a travel currency; it’s an asset with hedging and investment value. As long as you follow the dual principles of “phased exchange + immediate investment after exchange,” you can minimize costs and maximize returns.

Beginners are recommended to start with “Taiwan Bank online remittance + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or forex trading based on needs. This way, traveling becomes more cost-effective, and you gain an extra layer of protection during global market fluctuations.