Japanese Yen Exchange Guide | 5 Major Channels for Benchmarking to Find the Most Cost-Effective Withdrawal Method

In 2025, the NT dollar to Japanese Yen has surged to 4.85, and many are starting to consider whether to exchange for Yen. But do you know? Just choosing the wrong exchange channel can cost you an extra 2,000 NT dollars. We analyze Taiwan’s 5 major Yen exchange channels to help you find the most cost-effective solution.

Why is now a good time to exchange for Yen?

Travel demand rebounds
Japan remains the favorite overseas destination for Taiwanese, with cash consumption in Tokyo, Osaka, and Hokkaido still not fully replaced by electronic payments (credit card penetration is only 60%).

Investment perspective heats up
The Yen offers both hedging properties and arbitrage opportunities. As one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), funds flow into Yen during market turbulence—during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, enough to offset a 10% stock market decline. For Taiwanese investors, holding Yen is like adding insurance to Taiwan stocks’ volatility.

Exchange rate trend is favorable
Compared to 4.46 at the start of the year, the appreciation is 8.7%. Under the NT dollar depreciation pressure, the investment gains from Yen appreciation are quite substantial.

Practical comparison of 5 Yen exchange channels

Option 1｜Bank counter cash exchange (highest cost)

Carrying NT cash directly to a bank or airport counter to exchange is the most traditional and straightforward method. But what’s the cost? Using the “cash selling rate”—about 1-2% worse than the spot rate—plus possible handling fees, results in the biggest loss overall.

For example, based on Taiwan Bank’s rate on December 10, 2025, the cash selling rate is 0.2060 NT$/Yen (1 NT$ = 4.85 Yen). E.SUN Bank charges NT$100 per transaction. For NT$50,000, just the exchange spread alone results in a loss of NT$1,500–2,000.

Suitable for: People unfamiliar with online operations or needing urgent cash at the airport.

Option 2｜Online currency exchange + in-person cash pickup (moderate)

Use bank app or online banking to convert NT$ to Yen at the “spot sell rate” (about 1% better than cash selling rate), then deposit into a foreign currency account. When cash is needed, pick it up at the counter or foreign currency ATM.

Advantages: better exchange rates. Disadvantages: need to open a foreign currency account first, and withdrawal fees (interbank NT$5-100). Estimated cost for NT$50,000 is NT$500–1,000, cheaper than in-person exchange.

Suitable for: Investors with forex experience planning to hold Yen long-term.

Option 3｜Online currency settlement + airport withdrawal (most planned)

No need for a foreign currency account. Book online via bank website, fill in currency, amount, branch, and date. After transfer, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rate.

Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), suitable for pre-trip planning. Estimated cost NT$300–800, between the above options.

Suitable for: Well-planned travelers wanting to ensure cash before departure.

Option 4｜Foreign currency ATM withdrawal (most convenient 24/7)

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash, operational 24/7, with only NT$5 cross-bank fee. Fubon Bank’s foreign currency ATMs allow withdrawal from NT dollar accounts, with a daily limit of NT$150,000.

There are about 200 foreign currency ATMs across Taiwan, with denominations limited to 1,000/5,000/10,000 Yen. During peak times (like airports), cash may run out. Plan ahead if nearby ATMs lack cash. Estimated cost NT$800–1,200.

Suitable for: People who lack time to visit banks or need emergency cash.

Option 5｜Online currency settlement + foreign currency ATM combo (most flexible)

Combine options 3 and 4: lock in exchange rate online first, then withdraw flexibly via ATM. Estimated cost NT$300–800.

Suitable for: Investors with NT$50,000–200,000 budget seeking flexibility.

Cost comparison table of 5 exchange methods

Market outlook for exchanging Yen now

Short-term volatility risk
The Bank of Japan is on the verge of raising interest rates—Governor Ueda recently made hawkish comments, boosting market expectations of a rate hike to 0.75% at the December 19 meeting (a 30-year high). USD/JPY has fallen from the high of 160 at the start of the year to 154.58; short-term may rebound to around 155, but medium to long-term forecasts suggest below 150.

Long-term safe-haven value
As one of the three major safe-haven currencies, Yen is suitable for hedging Taiwan stock market fluctuations. But short-term risks include arbitrage unwinding, with potential swings of 2–5%.

Recommended strategy
Avoid exchanging all at once; staggered entry can effectively average costs. Also, don’t let the Yen sit idle—consider Yen fixed deposits (annual interest 1.5–1.8%), Yen insurance policies (guaranteed interest 2–3%), Yen ETFs (e.g., Yuanta 00675U, management fee 0.4%), or swing trading to generate returns.

Quick FAQ

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate applies to physical banknotes, with on-the-spot delivery but 1–2% worse than spot. Spot rate is used for electronic transfers (T+2 settlement), more favorable but requires waiting.

Q: How much Yen do I get for NT$10,000?
At 0.2060 NT$/Yen, about 48,500 Yen; at spot rate 0.2061, about 48,700 Yen.

Q: What do I need to bring for in-person exchange?
ID + passport (foreigners bring passport + residence permit). If booked online, also bring transaction notice. Under 20 needs parent’s accompaniment; over NT$100,000 may require source of funds declaration.

Q: Are there withdrawal limits at foreign currency ATMs?
Post-2025, daily limits are generally NT$100,000–150,000 equivalent (varies by bank). Our bank cards avoid cross-bank NT$5 fee, so consider multiple withdrawals.

Final thoughts on exchanging Yen

The Yen has evolved from a simple “travel pocket money” to a versatile asset for hedging and investment. Whether traveling or asset allocation, mastering “staggered exchange + immediate investment” can minimize costs and maximize returns.

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