Is exchanging NT$4.85 for JPY now a good deal? The latest 2025 exchange guide

December 10, 2025, the Taiwan dollar to Japanese Yen has surpassed 4.85—this is the highest level this year. For many, this timing raises a key question: Is it worthwhile to exchange for Yen now?

The short answer is: Partially worthwhile, but you need to use the right method.

Compared to the beginning of the year at 4.46, the Yen has appreciated by 8.7% over the year, which indeed presents an opportunity for investors looking to enter. But the issue isn’t just the exchange rate, it’s which channel you use to exchange—because just choosing the method can result in costs exceeding NT$1,500.

Is now the golden time to exchange for Yen?

Global risk aversion sentiment is rising

The Yen, as one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc), often becomes a refuge during market turbulence. In the week of the Russia-Ukraine conflict outbreak in 2022, the Yen appreciated 8% in just seven days, while the stock market fell 10%—this demonstrates the power of safe-haven assets.

For Taiwanese investors, exchanging for Yen is not only for travel but also for hedging against Taiwan stock market volatility.

Expectations of rate hikes by the Bank of Japan push up the exchange rate

BOJ Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations for rate hikes rising to 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high), and Japanese government bond yields have also hit a 17-year high of 1.93%.

USD/JPY has fallen from the high of 160 at the start of the year to 154.58; short-term fluctuations may bring it to 155, but medium to long-term forecasts suggest it will stay below 150. This indicates the Yen still has medium-term support.

Arbitrage closing risk

However, investors should be aware of a hidden risk: Japan has maintained ultra-low interest rates (only 0.5%) for a long time, making the Yen a “funding currency.” Many hedge funds borrow Yen at low interest and convert to high-interest USD investments (the USD-JPY interest rate differential is 4.0%). If risks increase, these arbitrage trades may close collectively, and the Yen could face short-term pressure of 2-5%.

Suggestion: Enter gradually, diversify costs

Exchanging Yen is indeed advantageous, but don’t convert all at once. Taiwan’s foreign exchange demand has grown 25% in the second half of the year, but market variables remain. Staggered operations can average costs and avoid risks at a single point in time.

Four practical channels for exchanging Yen compared

Based on the latest data as of December 10, 2025, here is a breakdown of the four most common methods in Taiwan:

Method 1: Bank counter direct exchange

This is the most traditional and straightforward approach—bring cash directly to a bank branch or airport counter. Simple to operate, immediate cash pickup, but the worst exchange rate.

Banks use the “cash selling rate,” which is usually 1-2% worse than the spot rate. For example, Taiwan Bank’s same-day cash selling rate is NT$0.2060 per Yen (i.e., NT$1 = 4.85 Yen). Some banks also charge handling fees.

For NT$50,000, exchanging at the counter could lose NT$1,500–2,000. High safety, full denominations (1,000, 5,000, 10,000 Yen), but the cost is relatively high.

Suitable for: Urgent airport needs, elderly unfamiliar with online operations.

Method 2: Online exchange transfer + counter/ATM withdrawal

First, convert NT$ to Yen via bank app and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). When cash is needed, choose counter withdrawal or use foreign currency ATMs.

In this process, foreign currency ATMs play a key role—using a chip-enabled bank card to withdraw Yen cash 24/7 from bank foreign currency ATMs, with a cross-bank fee of NT$5. Note: There are about 200 foreign currency ATMs nationwide, limited in number, and cash can run out during peak times (especially at airports).

For example, E.SUN Bank’s foreign currency ATMs have a daily withdrawal limit of NT$150,000 equivalent, with no exchange handling fee. E.SUN’s limit is NT$50,000 (about 50 banknotes), but the total daily limit is NT$150,000. If withdrawing at the counter, handling fees are NT$100–200.

Overall costs range NT$500–1,000, half the price of counter exchange.

Suitable for: Experienced with foreign currency accounts, wanting to buy in batches, considering future fixed deposits.

Method 3: Online currency exchange reservation + airport pickup

No need for a foreign currency account—fill in amount, branch, and date on the bank’s website, then bring ID and transaction notice to the counter for cash pickup. Taiwan Bank’s “Easy Purchase” online currency exchange service is fee-free (pay NT$10 via Taiwan Pay), with a 0.5% favorable rate.

The biggest advantage is pre-booking airport pickup—Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours. For travelers before departure, no detours needed.

Reserve 1-3 days in advance, costing NT$300–800. The only limitations are branch hours (9:00–15:30, except 24-hour outlets), and once selected, the branch cannot be changed.

Suitable for: Planned travelers with confirmed departure dates who want to withdraw directly at the airport.

Method 4: Foreign currency ATM self-service withdrawal

This is the most flexible option—using a chip-enabled bank card to withdraw Yen directly from foreign currency ATMs, available 24/7, deducted directly from a NT$ account (cross-bank fee NT$5). Instant cash.

But limitations are clear: only about 200 ATMs nationwide, denominations fixed at 1,000, 5,000, 10,000 Yen, and cash shortages may occur during peak times. Costs range NT$800–1,200.

Note: Japan’s domestic ATM international withdrawal services will be adjusted by the end of 2025, requiring Mastercard or Cirrus cards in the future. Don’t wait until the last minute to withdraw.

Suitable for: Travelers with no time to visit banks, needing cash urgently, departing at night.

Cost comparison table for NT$50,000 exchange

Based on the latest rates as of December 10, 2025:

One look shows: Online currency exchange reservation is the lowest-cost method, saving about NT$1,200.

Quick FAQs

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

Cash exchange rate is the bank’s buy/sell price for physical banknotes, used for immediate cash transactions. It usually is 1-2% worse than the spot rate, making it more costly.

Spot rate is the foreign exchange market rate for settlement within T+2 (two business days), mainly used for electronic transfers and foreign currency accounts. It is closer to the international market price and more favorable.

In simple terms: transactions with cash → worse rate; electronic transfers without cash → better rate.

Q. How much Yen do I get for NT$10,000?

Using the December 10 Taiwan Bank cash selling rate of 4.85, NT$10,000 ≈ 48,500 Yen.

Using the spot selling rate (~4.87), ≈ 48,700 Yen, a difference of about 200 Yen (roughly NT$40).

Q. What ID do I need for counter exchange?

Taiwanese citizens: ID card + passport
Foreigners: Passport + residence permit
Company accounts: Business registration documents
Pre-booked: Transaction notice required

Under 20: must be accompanied by parent and consent form. Large amounts (>NT$100,000) may require source of funds declaration.

Q. Are there limits on foreign currency ATM withdrawals?

Regulations vary by bank (some tighten from October 2025):

• CTBC Bank: NT$120,000 per transaction and per day for own cards; other bank cards depend on issuing bank
• Taishin Bank: NT$150,000 per transaction and per day for own cards; others NT$20,000 per transaction, NT$150,000 per day
• E.SUN Bank: NT$50,000 per transaction (50 banknotes), NT$150,000 per day for own cards; others NT$20,000 per transaction, NT$150,000 per day

Use your own bank card to avoid cross-bank fees; plan ahead during peak times.

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

If you’ve already exchanged Yen, don’t let it earn zero interest. Based on your risk tolerance, here are some options:

Conservative: Yen fixed deposit
E.SUN, Taiwan Bank offer foreign currency accounts starting at 10,000 Yen, with annual interest rates of 1.5–1.8%. Suitable for medium-term holding.

Medium-term: Yen savings insurance
Cathay, Fubon life insurance savings policies with guaranteed interest rates of 2–3%, suitable for planning over 3+ years.

Growth: Yen ETFs
Yuanta 00675U, 00703 tracking Yen indices, management fee 0.4% annually, can be bought as fractional shares via brokerage apps for dollar-cost averaging. Ideal for those wanting to participate in Yen appreciation while diversifying risk.

Swing trading: Forex trading
Trade USD/JPY, EUR/JPY directly on forex platforms, suitable for short-term swings and intraday trading. Advantages include two-way trading and 24-hour market.

Final summary: Yen is more than just travel money

The Yen has long transcended the role of “travel pocket money,” becoming an asset with hedging functions and small-scale investment value.

With the Taiwan dollar under continued depreciation pressure and global central bank policies diverging, moderate allocation of Yen can hedge Taiwan stock risks and participate in exchange rate gains.

The core principle is simple: Gradually convert in batches to average costs, then transfer into fixed deposits or ETFs for growth. Beginners can start with the simplest options like “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then upgrade as needed.

This way, you not only save on travel expenses but also add a layer of protection during global market fluctuations.